Lack Of Financial Knowledge Research Articles

Economics is learnt in the family: revaluing family influence on financial behaviour in India

Family economics primarily studies the influence of the family on consumption and investment behaviour through the generations. Research has clearly shown that the family should be the source for most of a youth's financial knowledge. This study attempts to fill a gap as scant literature is available on the influence of the family on financial behaviour of the youth in India. The interviews were largely administered in person and in a few cases through an email or on the phone. The results show that only 34% of parents were having discussions with their offsprings on financial planning and 42% of the respondents felt they were 'aware and educated enough' to impart financial training to their offsprings. 25% of the parents admitted to their lack of financial knowledge. Family involvement in financial education programs is not at all well developed in India. The study gives several recommendations in this regard.

Economics is learnt in the family: revaluing family influence on financial behaviour in India

Family economics primarily studies the influence of the family on consumption and investment behaviour through the generations. Research has clearly shown that the family should be the source for most of a youth's financial knowledge. This study attempts to fill a gap as scant literature is available on the influence of the family on financial behaviour of the youth in India. The interviews were largely administered in person and in a few cases through an email or on the phone. The results show that only 34% of parents were having discussions with their offsprings on financial planning and 42% of the respondents felt they were 'aware and educated enough' to impart financial training to their offsprings. 25% of the parents admitted to their lack of financial knowledge. Family involvement in financial education programs is not at all well developed in India. The study gives several recommendations in this regard.

Financial literacy, financial advice, and financial behavior

In this survey, we review the voluminous body of literature on the measurement and the determinants of financial literacy. Wherever possible, we supplement existing findings with recent descriptive evidence of German households’ financial literacy levels based on the novel Panel on Household Finances dataset, a large-scale survey administered by the Deutsche Bundesbank and representative of the financial situation of households in Germany. Prior research not only documents generally low levels of financial literacy but also finds large heterogeneity in financial literacy across the population, suggesting that economically vulnerable groups are placed at further disadvantage by their lack of financial knowledge. In addition, we assess the literature evaluating financial education as a means to improve financial literacy and financial behavior. Our survey suggests that the evidence with respect to the effectiveness of the programs is rather disappointing. We also review the role of individuals’ financial literacy for the use of professional financial advice and assess whether expert intervention can serve as a substitute to financial literacy. We conclude by discussing several directions for future research.

Approaches to promote handwashing and sanitation behaviour change in low‐ and middle‐income countries: a mixed method systematic review

Approaches to promote handwashing and sanitation behaviour change in low‐ and middle‐income countries: a mixed method systematic review

The Participation of the Small Shareholder in the Annual General Meeting: A Reflection of Good Corporate Governance? **

This paper analyses the level of small shareholder (SS) participation in the Annual General Meeting (AGM), assessing how this reflects upon the corporate governance of listed entities. It focuses on SS attendance, voting and proposals (excluding those of institutional and majority shareholders), improving SS participation and the significance of such AGM proceedings to listed company corporate governance. Empirical mixed methodology research is carried out in a Maltese listed company (LC) setting by means of semi-structured interviews with seventeen LC secretaries, five stockbrokers, an online questionnaire responded by fifty-four shareholders in different LCs, as well as the analysis of company notices and documentation relating to the AGM. Results indicate that SS participation is weak. Attendance is poor, and is often spurred both by legitimate factors such as information on current financial performance and by questionable ones such as refreshments served and venue. Shareholders seem uncomfortable in asking management formal questions and even in voting by show of hands, and therefore opt for informal interaction with management and for voting by poll, the latter often rendering attendance fruitless and even unnecessary by permitting proxies. As for proposals, they could induce management’s later action despite seldom, if ever, being approved, but their submission is rare and mostly frivolous, commonly hampered by a lack of financial knowledge. The study concludes that the current level of SS participation does not render the AGM a tool reflecting good corporate governance, as it does not keep in balance the interests of this shareholder with those of other stakeholders. For the sake of better direction and control, and, in particular, for more transparency and accountability, the AGM has to be less stage-managed, as well as more interactive and engaging towards such shareholder. This calls for increased management commitment, particularly towards more investoreducation and guidance.

The actual challenges of financial literacy

In our always-evolving world, financial literacy and inclusion are crucial in the development of sustainable welfare and a more transparent and fairer society. We cannot forget that the subprime mortgage crisis of 2008 that has continued across the world to this day has financial illiteracy as one of the most aggravating factors. The main challenge for many consumers worldwide is that the requirements of adequate financial literacy skills have been steadily increasing over time. Individuals have to take a wide range of financial decisions and unfortunately, they sometimes overlook or simply do not know the risk attached with the decisions they are making until it is too late. The main challenges for financial literacy at the micro-level, meso-level, and macro-level are over deference to the financial industry, lack of financial knowledge, overconfidence about financial knowledge, lack of government initiatives, frameworks and regulations, lack of life-cycle planning and interesting and fascinating ways to teach financial literacy skills.

Financial Education In Building Financial Literacy Among Sudanese Youth

Financial literacy is a crucial life skill. It goes well beyond the simple concepts of saving and borrowing. Lack of financial knowledge can expose youth to face financial difficulties. This research focuses on assessing the impact of financial exposure via educational channels on university student’s financial attitude. The approach of the research is qualitative in nature. Data was collected through structured interviews. The interview included questions on demographics, education, health insurance and financial capability among Sudanese youth. Twenty (20) university students from two different states were interviewed between August 2013 and September 2013. Thematic analysis was used to analyse the data. The findings of this research revealed that youth who were exposed to financial knowledge during their university studies have better understanding of financial knowledge compared to those who were not exposed. The paper concludes that financial education at an early age can reduce the financial illiteracy and alleviate financial difficulties among youth significantly.

The Exposure of Albanian Firms to the Exchange Rate Risk and Its Hedging

Foreign exchange is among the most important risks facing most economic agents, whether they are corporations, institutional investors, or households. In recent times, the volatility of these rates has increased substantially and, as a result, agents have a greater need to hedge against these risks. In today’s business environment, firms find it necessary to hedge the exchange rate risk, which has a big impact in their earnings. This risk affects not only firms engaged in international business but even those operating only in their local markets. Albanian businesses face a high rate of exchange rate risk due to strong business relationships with neighbor countries and broader. Hedging this risk is difficult because in a developing country like Albania, currency derivative market does not exist. The nonfunctioning of Tirana stock exchange, the fact that commercial banks still do not offer forward contract widely, and the lack of financial knowledge among businesses’ representatives are among the reasons that makes hedging so difficult in our country.This paper investigates to what extend Albanian businesses face exchange rate risk, and how these businesses hedge it. We have considered a case study from an Albanian firm and found out the ways they protect their earnings from this risk. One concerning finding is that Albanian firms do not hedge financially the exchange rate exposure, even though they have a large degree of exposure. At the end we conclude by developing a framework for currency hedging to be applied from these firms in order to reduce their currency exposure. DOI: 10.5901/ajis.2013.v2n9p745

REGULATION PROBLEMS AND THEIR POSSIBLE SOLUTIONS IN THE LITHUANIAN EXPRESS CREDIT SECTOR

Abstract. Express credit institutions have started their activities only five years ago when the economic crisis came and increased the borrowing demand. Now, we have the consumer credit law and other legislative acts which aim to ensure this sector regulation. However, there still remain problems that have to be solved. The main of them are inconsistencies in consumers’ solvency evaluation in different companies, the lack of financial knowledge in society and its information, the aggressive lending and advertising policy. The increasing demand for this service shows its importance and proves the necessity to maintain it in the market while at the same time ensuring consumer protection.Key words: express credits, pay-day loans, consumer credit

Exploring Personal Finance Concepts Through Simulation Role Play

Given the current economic crisis, the question is not if we should educate students in matters of personal finance but rather where such teaching should occur and what instructional methods should be used. This paper discusses the status of secondary financial education programs in the U.S., the lack of financial knowledge among teens, and the learning preferences of today’s ‘millennial’ students. Using an interview protocol, a teacher-created curriculum using a group simulation role-play employed at a New Jersey independent high school is described, integrating basic personal financial education in a driver’s education course. Post-test results reveal students (n=45) learned basic personal finance concepts through this instructional method.

Personality Factors, Money Attitudes, Financial Knowledge, and Credit‐Card Debt in College Students1

The issue of credit‐card debt among college students has received increasing attention. This study explored factors hypothesized to be causes and effects of credit‐card debt in 448 students on five college campuses. Students reported an average of $1,035 (SD=$1,849) in debt, including students without credit cards or credit‐card debt. Lack of financial knowledge, age, number of credit cards, delay of gratification, and attitudes toward credit‐card use were related to debt. Sensation seeking, materialism, the Student Attitude Toward Debt scale, gender, and grade point average were not unique predictors of debt. Students reporting greater debt reported greater stress and decreased financial well being. Results highlight the need for comprehensive financial literacy education among college students.

Price of Shelter: Housing issues Affecting Low-Income, New Immigrant Latinos

This qualitative study identified housing issues affecting low-income, new immigrant Latino families in a recently designated metropolitan county. Researchers conducted focus groups with real estate professionals and interviews with Latino families. It was concluded that the housing challenges facing low-income Latinos in Cache County, Utah, were similar to those issues highlighted in quantitative research results. However, this research provided “a voice” for Latinos to express their views. It gave insights into the lives of immigrants attempting to learn the U.S. system of banking and checking. It also addressed the plight of the largest and fastest growing minority in the U.S. For example, the problem with obtaining affordable housing was directly related to Latinos’struggles with low income and job stability. Their housing conditions were also influenced by a lack of financial knowledge in all aspects of the U.S. banking and credit system, and especially of the mortgage lending industry. Discrimination in the real estate and rental markets continued to be a major hindrance to the advancement of this minority group. Even after low-income Latinos obtained a rental unit or purchased a home they still faced problems of low quality housing. Most of them understood the social and economic benefits that derive from homeowner ship, but many could not obtain it because of their struggles with low income, legal status, and/or discrimination.