Higher Level Of Financial Literacy Research Articles

Financial literacy and risk-taking behavior: a study of graduates and undergraduates

PurposeThis study examines the relationship between financial literacy and risk-taking behavior in the stock market for both graduates and undergraduates.Design/methodology/approachThis study conducted two surveys on two groups: graduates and undergraduates. The questionnaires were sent to the two groups via “Google Form”. The surveys were undertaken from March to October 2021, with final data on 500 undergraduates and 400 graduates. The three techniques used are multiple linear regression (MLR), structural equation model (SEM) and ordinal logit regression (OLR) to examine the causal relationships.FindingsBased on survey data on 400 graduate and 500 undergraduate students, our results show that financial literacy is positively associated with risk-taking behavior (i.e. use of debt and willingness to use debt) after controlling for demographics. Graduates with higher levels of financial literacy are more likely to use debt. Undergraduates with higher levels of financial literacy are more willing to use debt. In addition, parental education has a significant moderating effect on the association between financial literacy and debt use among undergraduate students. The results are robust compared to the alternatives.Research limitations/implicationsAlthough this study finds a positive association between financial literacy and risk-taking behavior among graduates and undergraduates, and these results are robust to the alternatives, the scope of this study is limited and only focuses on Vietnam. Hence, it needs to be expanded overseas. Next, graduates may make investment decisions based on stock prices or valuations, and as a result, the link between financial literacy and stock valuations should be investigated in subsequent research. Last but not least, further studies should also examine the digital financial literacy level of the younger generation, as it plays an important role in the digital age.Practical implicationsFirst, this study finds that higher financial literacy tends to use more debt, implying that financially literate people know how to use debt smartly to earn more profits. Second, students with higher-educated parents are less likely to use debt for stock investment, meaning that parents help students avoid possible risks while in the university. Finally, female graduates and college students all perform lower in financial literacy than their male counterparts. This can create a larger gender gap in financial literacy between women and men, particularly, in a society in which men often play the leading role in the family. As a result, it calls for policymakers, educators and parents to pay more attention to improving financial literacy among girls and women in general.Originality/valueThis study has three contributions. First, this is the first study to examine the impact of financial literacy on risk-taking behavior between two groups of graduates and undergraduates. The results show that individuals with a higher level of financial literacy are more likely to engage in risk-taking behavior (i.e. debt use) in terms of the stock market. Recent research, for example, Phung et al. (2022), examines investors’ informal debt (from families and friends), while this study investigates graduates’ debt use (from brokerage firms). Second, parental education is a significant mediator between college students’ financial literacy and debt use. The literature on parental socialization mainly documents parents’ direct influence on children’s financial knowledge and performance (Shim et al., 2010; Phung, 2023). Unlike previous research, this study finds that parental education plays a moderating role between college students’ financial literacy and their risk-taking behavior. Finally, three methods and multiple models are used to test causal relationships. The results are robust compared to the alternatives.

The effect of financial literacy and demographic variable on behavioral biases

The current research investigates the association between demographic factors, including financial knowledge and demographic characteristics like gender, occupation, age, education, and income, and investor behavior biases, including bias against overconfidence, disposition effect, and herding bias. Further enhancement of behavioural finance research is required in Indonesia. This study applied a quantitative analysis technique called structural equation modeling. Stock investors aged 17 and 40 were given questionnaires for this study. Respondent data collection was carried out by distributing questionnaires through several social media sites, such as Line, WhatsApp, and Instagram, to members of the investor’s community. The total number of respondents obtained from distributing this questionnaire was 170. According to the study, overconfidence bias significantly affects income and financial literacy. However, overconfidence bias does not affect gender, occupation, investment experience, education, or age. Furthermore, for behavioral biases, the disposition effect does not affect financial literacy or all demographic factors. Finally, for herding behavior bias, bias significantly affects financial literacy, investment experience, and income, but herding bias does not affect gender, occupation, education, age, or income. These results have implications for investors with a high level of financial literacy, which will help them determine rational investment decisions. This research also has implications for high-income investors who tend not to follow herding behavior.

The Mediating Effect of Financial Literacy on the Relationship between Saving Behavior and Financial Well-being of Micro, Small, and Medium Enterprises in Babak District

The Mediating Effect of Financial Literacy on the Relationship between Saving Behavior and Financial Well-being of Micro, Small, and Medium Enterprises in Babak District

Investigating Influence of Financial Literacy on Investment Decision: Mediating Role of Risk Tolerance


 The Financial Risk Tolerance has a big impact on financial decision-making and is essential for understanding investment opportunities. One important characteristic that draws investors to take advantage of market opportunities is a higher risk tolerance. This study looks into how risk tolerance acts as a mediating factor in the relationship between financial literacy and investing performance. A structured questionnaire was used to gather information from 288 individual investors in India. The results show a strong positive association between investment decision and financial literacy, with risk tolerance acting as a partly mediating factor. This study is noteworthy for its innovative approach to investigating the mediating function of risk tolerance. It demonstrates how higher levels of financial literacy lead to a greater willingness to take risks, which in turn produces better and more satisfactory investment returns. This study has ramifications for investors, financial advisors, and legislators. It highlights the value of financial literacy in raising awareness and encouraging non-investors to make investments.

Evaluating financial literacy and behavior among online sellers in Zambales

This study was solely focused on the financial literacy level and financial behavior of the online sellers in Iba, Zambales as to their cash management; expenditure; savings; and investments. The researchers utilized the quantitative descriptive correlational research design with questionnaire as the main instrument in gathering data from the one hundred forty (140) online sellers in Iba, Zambales who were randomly selected. The researchers found out that the majority of the respondents are female in their early adulthood, single, college undergraduate major in business, with meagre income, had monthly expenses more than the income and saving, and neophyte in online selling business. The respondents stood well-educated on the dimensions towards the factors of financial literacy as to cash management, expenditures, savings and investment. The respondents strongly agreed on the dimensions towards the factors of financial behavior as to cash management, expenditures, savings and investment. There were significant differences on the perceptions of the respondents when grouped towards dimensions on financial literacy as to their monthly income, monthly expenses and monthly savings, highest educational attainment, and years in online selling respectively. There are significant differences on the perceptions of the respondents when grouped towards dimensions on financial behavior as to their monthly income, monthly expenses and monthly savings, and area of specialization respectively. There is positive moderate relationship between financial literacy and financial behavior. Based on the summary of the investigations conducted, and the conclusions arrived at, the researchers recommended that online sellers are still encouraged to attend financial management seminars to maintain a high level of financial literacy and behavior to prevent losses, financial squander, and misuse; establish a family savings culture; have a financial record management to sustain the monitoring of their inventory and future decisions; and lastly, future researchers may conduct a replication of this study.

The Influence of Procurement Literacy and Budget Supervision on Regional Public Health Service Agency Budget Absorption of Tugurejo Hospital

Financial planning, management, and control will improve with a greater understanding of procurement literacy and budget monitoring. The regulations about the procurement of government goods and services are currently governed by Presidential Regulation Number 54 of 2010, with the most recent amendment being Presidential Regulation Number 16 of 2018, commonly known as the Presidential Decree on Government Procurement of Goods and Services. These regulations were formulated by the Procurement Policy Institute for Government Goods and Services, also known as LKPP. The urgent/immediate need for goods/services results in the procurement process for goods/services sometimes not complying with the provisions for procurement of goods/services. Therefore, a budget monitoring role is needed, so that budget absorption can be absorbed optimally. This research aims to determine the influence of procurement literacy and budget supervision on the absorption of the BLUD Tugurejo Hospital. This type of research uses quantitative descriptive, using regression testing via the SPSS application. The research results show that procurement literacy and budget supervision have a significant effect on the absorption of the BLUD Tugurejo Hospital. The positive impact that arises is the improvement of existing infrastructure in the village so that national development can continue to move in a better direction. In practice, the BLUD of Tugurejo Regional Hospital requires budget supervision by competent human resources so that the planned budget absorption can be realized perfectly. Competent HR means HR with a high level of financial literacy and procurement literacy

Financial literacy and inflation expectations of households

In this article we investigate whether this heterogeneity is related to differences in the level of financial literacy of households. Using microdata from surveys on inflation expectations of Kazakhstani households, we constructed an indicator of "financial literacy". According to the results, this indicator helps to explain the level of inflation expectations: respondents with a relatively higher level of financial literacy tend to have relatively lower and more accurate inflation expectations.

Financial Literacy and Self-Control as the Predicting Variables to the Financial Behavior of Senior High School Students

This study dealt with the financial literacy and self-control, as predictors to financial behavior among Senior High School students. The primary goal of the study was to determine the level of financial literacy, self-control, and financial behavior in terms of their respective indicators, what domains of financial literacy and self-control substantially influence financial behavior. Also, this study utilized a quantitative-correlational design with 221 respondents among Senior High School students. The average weighted mean, Pearson R, and multiple regression analysis were the statistical tools used in this study. Along with this, results showed a high level of financial literacy among Senior High School students in terms of saving, budgeting, and investing. On the other hand, the results also showed a high level of self-control among Senior High School students in terms of inhibition, initiation, and continuation. Likewise, results showed a high level of financial behavior among Senior High School students regarding saving behavior, spending habits, and financial goal setting. In addition, there is a low correlation, and a significant relationship between financial literacy and financial behavior. Furthermore, there is a high correlation, and a significant relationship between self-control and financial behavior. Hence, this leads to the rejection of the null hypothesis. Saving, budgeting, and investing as domains of financial literacy have a significant influence to financial behavior. Additional, inhibition, initiation, and continuation as domains of self-control have a significant influence to financial behavior. These results helps the student know that their financial behavior or anything financial-related could be incorporated in their academic and non-academic journey.

Understanding Financial Literacy, Financial Resilience and Investment Decisions: A Case of Two Cities from India

The present study assessed the status of the financial literacy (FL) levels and examined its impact on the investment decisions of the investors from the cities of Ahmedabad and Vadodara in Gujarat state. We measured FL using a multi-dimensional construct of financial behaviour, attitude and knowledge. Investment decisions were analysed taking the six proxies – neutral information, personal financial need, macroeconomic indicators, accounting information, advocate information and firm image. The study revealed a high level of FL among the respondents with 62.50% of the respondents being highly financially literate and the remaining having a comparatively lower degree of FL. Though, respondents exhibited a higher level of financial literacy, they still lacked required degree of understanding of advanced financial and investment topics. Using simple linear regression, we found that investors’ investment decisions were significantly positively impacted by their levels of FL. This study has implications for employers, policymakers, regulatory authorities and financial education providers to achieve financial inclusion and well-being goals by devising appropriate strategies and interventions for individuals with varying level of FL.

Family Involvement and Saving and Spending Behaviours as Predictors to Financial Literacy of Senior High School Students: A Quantitative Investigation

This study dealt with family involvement and saving and spending behaviours as predictors to financial literacy among Senior High School students. The primary goal of the study was used to determine the level of family involvement, saving and spending behaviours, and financial literacy in terms of their respective indicators. Also, this study utilized a quantitative-correlational design with 221 respondents among Senior High School students. The average weighted mean, Pearson’s r, and multiple regression analysis were the statistical tools used in this study. Furthermore, multiple regression analysis was used to determine what domains of family involvement and saving and spending behaviours substantially influence financial literacy. Along with this, results showed a high level of family involvement among Senior High School students in terms of family support, family conflict, and family togetherness. On the other hand, the results also showed a high level of saving and spending behaviours among Senior High School students regarding saving, indifference to money, and spending. Likewise, results showed a high level of financial literacy among Senior High School students regarding saving behaviour, shopping behaviour, long-term planning, and short-term planning. In addition, there was a low correlation and a significant relationship between family involvement and financial literacy. Furthermore, there was a low correlation and a significant relationship between saving and spending behaviours and financial literacy. Hence, this led to the rejection of the null hypothesis. Family support and family conflict as domains of family involvement have a significant influence to financial literacy hence this led to the rejection of the null hypothesis. On the other hand, family togetherness as a domain of family involvement does not influence financial literacy. Additionally, saving and spending as domains of saving and spending behaviours have a significant influence to financial literacy hence, this led to the rejection of the null hypothesis. In contrast, indifference to money as a domain of spending and behaviours had no significant influence to financial literacy. In conclusion, this study would motivate educators and parents to configure the aspect of family involvement and spending and behaviours to improve the financial literacy among students.

Assessing the relative need and demand for financial education programs

We measure the relative need and demand for financial education programs among graduate stu- dents at a large university system. We find that self-assessed and measured financial literacy is sig- nificantly related to interest and demand for financial education. Individuals who self-report a high level of financial literacy but have low measured financial literacy are significantly less likely to be interested in financial education, while the opposite is true for financially literate individuals self- reporting a low level of financial literacy. Our study adds to research showing the importance of both believed and actual financial literacy measures and has implications for financial education programs.

Impact of financial literacy on investment decisions in developing countries: The example of Kazakhstan

This study aims to establish the impact of financial literacy on investment decision-making in developing countries, with the Republic of Kazakhstan serving as a case study. The research approach involved conducting a questionnaire survey for Kazakhstan residents to evaluate their level of financial literacy, followed by analysis of the results through the SPSS software. To evaluate the influence of financial literacy on the efficiency of investment decision-making, a correlation analysis was performed on two variables: the financial literacy index and the investment decision-making efficiency index. The findings indicate that respondents' financial literacy level has an impact on investment decision-making. After all, a higher level of financial literacy indicates a larger number of individuals who have made financial investments at least once, while among respondents with a lower level of financial literacy, approximately 30% did not invest at all. The impact of financial literacy on effective investment decision-making is dependent on age, education, and financial criteria. Moreover, personal income plays a pivotal role in facilitating informed investing choices. The proposed study has practical applications for financial and credit institutions, banks, and government officials in establishing a basis for efficiently injecting finances into the economy of a developing nation.

The assessment of integrative potential of simple and compound interest models in increasing students’ financial literacy

Introduction. The article studies the contradiction between the unprecedented surge in financial technologies, which determines the relevance of financial decision-making, and the lack of the educational process organization in an economic university that takes into account the cumulative effect of using formalized models of simple and compound interests in terms of integrating academic disciplines. The objectives of the study are (1) to identify opportunities to increase students’ financial literacy using the integrative potential of academic disciplines and (2) to assess the relationship between skills in applying formalized methods of financial decision-making based on the models of simple and compound interests, and the dynamics of financial literacy that contributes to positive financial behaviors. Materials and Methods. The methodological basis of the study is the Pareto principle, or the 20/80 rule, which says that 20 % of efforts give 80 % of the result and vice versa. Financial literacy of 224 students of Omsk economic universities was evaluated by means of an online survey. The questions reflected the objective level of respondents’ financial literacy, the subjective level and the need for further knowledge and skills in financial literacy. Results. The study has identified the possibilities of increasing students’ financial literacy by using formalized models of simple and compound interests in terms of integrating academic disciplines. The results of the analysis confirm that a higher level of financial literacy correlates to skills in applying simple and compound interest models and reveal a positive dynamics of the cumulative effect of integrating academic disciplines. The use of the Pareto principle in this study confirms that skills in applying formalized models of simple and compound interests, which account for about 20 % of financial literacy (in terms of attitudes, knowledge and skills), determine 80 % of the positive dynamics in the overall financial literacy level. Based on the findings, recommendations for managing educational process in order to ensure the positive dynamics of digital financial literacy have been provided. Conclusions. The study suggests that it is a promising idea to use the integrative potential of simple and compound interest models in increasing financial literacy that contributes to positive financial behaviors of economic university graduates.

How financial literacy moderates the relationship between qualitative business information and the success of an equity crowdfunding campaign: Evidence from Mediterranean and Gulf Cooperation Council countries

This paper presents empirical evidence suggesting that financial literacy moderates the inverted U-shaped relationship between the amount of qualitative business information provided and the success of an equity crowdfunding campaign. Drawing on a sample of 807 equity offerings posted on 26 platforms operating in 6 Mediterranean and Gulf Cooperation Council countries (Cyprus, France, Israel, Italy, Turkey and the United Arab Emirates), the findings indicate that higher levels of financial literacy amplify the positive effect of more comprehensive qualitative business information. However, once a qualitative business information threshold is crossed, financial literacy results related to observed negative returns are even more substantial. These results, rooted into the signalling and information overload theoretical frameworks, offer valuable insights for entrepreneurs, platform administrators, investors and policymakers.

Мониторинг динамики финансовой грамотности студентов в условиях интеграции учебных дисциплин

The article is devoted to the problem of the formation of financial literacy of students of economic universities in the context of the integration of academic disciplines. The aim of the work is to identify the possibilities of integrative links between academic disciplines in improving the level of financial literacy within the framework of the continuity of educational programs for undergraduate and graduate programs. As a means of integration, it is proposed to use the models of simple and compound percent. The importance of formalized models in the performance of financial operations of accumulation, discounting and, accordingly, in assessing the effectiveness of financial decision-making is noted. The paper presents the results of monitoring the dynamics of the level of financial literacy of students of the University of Economics. An online survey of undergraduate students was conducted in the context of courses of study and undergraduates. Respondents were asked questions related to identifying the objective level of financial literacy (knowledge of financial terms, activity in the financial services market, knowledge of simple and compound interest formulas, etc.). A separate block includes questions about the subjective level of financial literacy of respondents and the need for additional knowledge and skills in financial literacy. he results of the analysis of empirical material indicate a positive correlation between the objective and subjective levels of financial literacy of students, as well as the need for additional knowledge on financial literacy. At the same time, higher levels of financial literacy are associated with skills in mastering simple and compound interest models and demonstrate a positive trend in the cumulative effect of integrating academic disciplines. In its turn, the study of student activity in the financial services market determines the widespread use of digital financial instruments. The findings determine the need for students of economic universities to master formalized methods for assessing financial decision-making, which in the future will allow avoiding costly mistakes in practice and maintaining the required level of digital financial literacy.

Analysis of the literacy level of health workers regarding Islamic life insurance at the Ofa Padang Mahondang Community Health Center

IntroductionFinancial literacy on Islamic life insurance is considered low. Various things can be the causes of this low literacy including the lack of socialization, education, and professional collaboration programs.ObjectivesThis study aims to analyze the literacy level of health workers regarding Islamic life insurance considering the phenomenon of still very low penetration and density of such product. MethodThis research uses descriptive quantitative methods. Primary data was obtained through a questionnaire. The population of this study was 38 health workers who worked at the Ofa Padang Mahondang Village Health Center, Pulau Rakyat District, Asahan Regency, North Sumatra Province.Results57.9% of respondents had a high level of financial literacy, being able to answer correctly above 80%. 34.2% of respondents were in the middle category, being able to answer correctly between 60%-80%. Only 7.9% respondents were in low category, being able to answer correctly below 60%. ImplicationsThe study highlights the importance of continuous education and awareness campaigns about Islamic insurance among healthcare professionals and the broader population.Originality/NoveltyThis study contributes to efforts to increase knowledge about Islamic life insurance for health workers as the spearhead of health services in Indonesia.

Does the Financial Literacy of Householders Affect Household Credit Constraints?——Evidence from China

Financial literacy is gaining increasing importance as a policy objective in many countries. A growing literature has examined the role of financial literacy in household financial behavior. However, there is a little literature on analyzing household credit constraints from the perspective of financial literacy. This paper analyzes the impact of householders’ financial literacy on household credit constraints by using data from the 2017 China Household Finance Survey (CHFS2017) and using Probit regression analysis method. We find that higher financial literacy is significantly related to mitigation of the credit constraints.The main conclusion is that the householders’ financial literacy has a significant impact on household credit constraints. Households with higher levels of financial literacy are more likely to alleviate credit constraints.Therefore, improvements in financial literacy could mitigate the credit constraints, and thereby promote financial inclusion.

HUBUNGAN ANTARA LITERASI KEWANGAN, PENGARUH IBU BAPA DAN KAWALAN DIRI DENGAN SIKAP MENABUNG PELAJAR UNIVERSITI

Previous studies have shown that financial literacy and saving behaviour among university students are still low and many students face financial problems because they do not have any savings.This study aims to examine savings behaviour among university students in Malaysia. Specifically, this study examines the relationship between financial literacy, parents' influence, self-control, and savings behaviour among university students. Data was gathered from a sample of 377 university students through the survey method. The data was analysed using correlation. The findings reveal that the respondents have a high level of financial literacy, parental influence, self-control, and savings behaviour. Results indicated that financial literacy, parental influence and self-control positively related to savings behaviour. This study enriched the literature by identifying factors that influenced savings behaviour and provided suggestions to be practised by universities and parents in developing good savings behaviour among students. Financial knowledge needs to be inculcated in children from school so that they have good financial literacy and further enable them to manage their finances effectively.

Children's understanding of financial literacy and parents' choice of financial knowledge learning methods in Malaysia

Financial literacy is an essential lifelong skill that should be taught to children at any age. It holds the key to develop a generation of adults who are knowledgeable about money and the economy. Additionally, OECD (2018) suggests that using digital tools could significantly enhance financial literacy and well-being. Therefore, this paper aims to:(i)assess the financial literacy level of primary school children in the northern region of Malaysia and(ii)explore interactive and engaging methods for teaching financial literacy.The sample size was determined using Krejcie and Morgan's (1970) approach, resulting in 419 primary school students aged 7 to 12 and their parents. An online questionnaire was employed, and multi-regression analysis was conducted.The findings highlighted those primary students displayed a high level of financial literacy, scoring above 80 % on the questionnaire. Furthermore, parents expressed a preference for their children to enroll in personal finance subjects offered by schools, have financial assignments or activities at school, and engage in online financial games. The study emphasized the crucial roles of schools, teachers, and active parental involvements to enhance financial literacy. This study recommends incorporating interactive and attractive teaching methods through in-class and online activities at the school level.

Health factors that influence sustainable behaviour in a single-player resource management game

Encouraging sustainable use of limited natural, social, and economic resources requires understanding the variety of ways in which people think about how resources work and how they adjust their behaviour (or not) as available resources fluctuate. Previous investigations which have focused on understanding how individuals navigate erodible resources, have tended to use group-based, common pool games. However, such social games make it difficult to disentangle whether resource erosion is linked to difficulty navigating the dynamics of the resource or caused by social factors. Here, in two experiments, we recruited 781 participants to play a single-player resource management game in which individuals were invited to harvest monetary rewards from a fully depletable but stochastically replenishing resource over time. We find that the ability to sustain a resource over successive harvesting opportunities (in order to maximize the total harvested rewards) is reliably worse in individuals reporting elevated psychological distress, the often cooccurring hazardous alcohol use, and elevated rates of delay discounting. The associations between resource outcomes, harmful alcohol use, and psychological distress remained substantial even once we had controlled for elevated discounting rates (as a form of impulsivity and a strong risk factor for these health challenges). By contrast, individuals who reported higher levels of financial literacy and general well-being achieved better resource outcomes. Our observations demonstrate that the capacity to respond effectively to the dynamics of a resource are compromised in individuals at risk of psychological and alcohol-related disorders.