Low Financial Literacy Research Articles

Mentoring for Operational Governance and Islamic Financial Literacy at the BaRes Garbage Bank (Barakah Resik)

Abstract. By improving the operational governance and Islamic financial literacy of the Waste Bank, this study seeks to resolve the unresolved waste problem. The importance of implementing the 3R strategy (reduce, reuse, and recycle) is an important issue for building habits so as not to litter, motivate people to sort waste before disposal, maximize the use of used goods, and reduce the amount of used goods that are wasted. By equating similar waste with valuable items that can be saved, it is hoped that it will be able to realize the development of a clean and green environment. The partner in this award program is the Barakah Resik Waste Bank (BaRes), which faces problems in the form of a non-optimal management system and low financial literacy. The method used to strengthen partner governance includes building cooperation with CV in order to obtain stable prices. In addition, training in income recording, creating alternative forms, and Islamic financial literacy contributes to the strengthening of a structured administrative and financial system

Strategi Bank Syariah Indonesia Meningkatkan Inklusi Keuangan

This research is motivated by the efforts made by Bank Syariah Indonesia in participating in increasing financial inclusion in Indonesia. The development of financial inclusion in Indonesia has been slow due to the low financial literacy of the community. Therefore, researchers sought to conduct this research with the aim of describing the form of efforts made by Bank Syariah Indonesia in encouraging financial inclusion in Indonesia. This research was conducted in Malang City, especially at BSI KC Malang Soetta and BSI KC Malang Sutoyo using qualitative research methods and case study research types. The results obtained by the researcher are BSI KC Malang Soetta and BSI KC Malang Sutoyo using BSI Mobile to facilitate customers in accessing remote financial services. In introducing programs and services on BSI Mobile, BSI socialised BSI Mobile by holding a Mata Najwa On Stage event spearheaded by renowned journalist Najwa Shihab. The socialisation event was held at the UMM Dome on Wednesday, 12 July 2023.

DEMAND FOR AQUACULTURE INSURANCE AND BARRIERS’ EFFECTS AMONG FISH FARMERS IN LAGOS, NIGERIA

Boosting aquaculture insurance, as a financial instrument, can assist the sustenance of aquatic food demand in order to cushion fish farmers’ income, and ensure adequate farm property safety in Nigeria. This study examined the barriers affecting aquaculture insurance and its related demand determinants, with empirical evidence drawn from fish farmers in Lagos State. The study employed a survey approach cum multiphase sampling technique. A descriptive statistic and Friedman’s rank test were adopted in the data analysis. This study contributes immensely with the tabular and graphical models that explain the barriers affecting aquaculture insurance and demand determinants for aquaculture insurance in Lagos State, Nigeria. While a major barrier, from the findings, to demand for aquaculture insurance was recorded due to high cost of insurance premium, poor access to the policy, and the likes; low awareness, poor insurance regulation, poor claims settlement and low financial literacy, among fish farmers, were recorded for demand determinants for aquaculture insurance. The study recommended that aquaculture underwriters should enhance and expand their value-chain processes in a bid to bolster fish farmers’ production capacities. However, the government should expand the subsidy net for more fish farmers to have access. With the simplicity of insurance contract design, aquaculture underwriters will gain attraction from farmers, which will, in turn, generate improved premium and their potential profitability.

MANAJEMEN KEUANGAN KELUARGA NASABAH PNM MEEKAR SYARIAH DALAM PERSPEKTIF EKONOMI ISLAM

The purpose of this study is to determine the Islamic household financial management of PNM Meekar Syariah customers and provide an appropriate Islamic financial management model to manage family finances in an Islamic manner. The research method uses descriptive research with a qualitative approach. Research using descriptive methods is research that is directed to provide symptoms, facts accurately and systematically about the nature of certain regional populations. The results showed that the customer's understanding of household financial management was very simple. Customers have budgeting and apply financial management simply. Obstacles in its application due to uncertain income and low financial literacy owned. However, the research shows that the financial management of the three households studied is largely in accordance with the concept of Sakinah finance.

Analysis of Household Financial Behavior in Indonesia and Timor Leste

The phenomenon of household financial behavior in Timor Leste and Indonesia is strongly influenced by socioeconomic factors. However, low levels of education and income contribute to low financial literacy and suboptimal financial management behavior among housewives. In both contexts, factors such as gender, income level, education and parental influence play a key role. With a better understanding of the influence of these socio-economic factors, effective policies and interventions can be formulated to improve the financial literacy and financial management behavior of people in both countries. Income and employment levels have a significant influence on the financial behavior of tanto families in Timor Leste and Indonesia. Cultural norms have a significant influence on household financial behavior in both Indonesia and Timor Leste. Therefore, awareness of cultural norms is key in shaping attitudes, knowledge and behaviors that contribute to the financial management and well-being of individuals and families in both countries. Access to financial resources has a significant impact on household financial behavior in both Indonesia and Timor Leste. Improving financial literacy in Indonesia is key to increasing people's access to financial resources.

Islamic Family Finance: An In-Depth Analysis of Financial Management Practices

This research contains to assess Islamic Family Financial Management for PNM Mekaar Syariah consumers group in Jambesari District, Bondowoso. This study aims to analyze Islamic Family Financial Management for PNM Meekar Syariah customers. The research method uses descriptive research qualitative approach. Research using descriptive methods is research directed to provide symptoms, facts accurately and systematically regarding the nature of the population of a particular area. The results showed that the understanding of customers in managing household finances is very simple. Customers have budgeting and implement simple financial management. Obstacles in its implementation are due to uncertain income and low financial literacy. However, research shows that the financial management of the three households studied is mostly in accordance with the concept of Sakinah finance.

ФИНАНСОВАЯ БЕЗГРАМОТНОСТЬ КАК ЭКОНОМИЧЕСКАЯ УГРОЗА

The paper demonstrates financial illiteracy as an economic threat. The topic is relevant due to the fact that the debt load of the Russian population indicates low financial literacy. Polls and studies only prove this thesis. At the same time, the low level of financial literacy leads to economic problems throughout the state, and therefore the situation must be eliminated. At the end of the article, the author forms proposals that, when put into practice, are able to solve the identified problem.

The Effect Of The #AwasModus Campaign At @bankbca Tiktok On Community Financial Literacy


 In Indonesia, the increase in the level of financial inclusion and literacy in the community is not balanced. There is a considerable gap between the high level of financial inclusion and low financial literacy, which opens a gap of opportunity for bank fraud mode behavior to carry out its actions. The perpetrators of the fraud mode, on behalf of the bank irresponsibly. Bank BCA, which is also one of the banks that experienced this phenomenon, conducted a campaign that became one of the preventive measures to deliver educational messages to the public as a form of financial literacy. The purpose of this research is to find out whether there is an influence between the #AwasModus campaign message delivered by BCA on the level of public financial literacy. The concepts used in the study used the concepts of campaign messages and financial literacy. The method used is explanatory quantitative using a questionnaire survey to 201 respondents. And the results of this study indicate that the independent variable, namely the campaign message, has an influence on the dependent variable, namely financial literacy, by 33.1%. The conclusion of this study is that there is an influence between the #AwasModus campaign message on Tiktok @bankbca on people's financial literacy.
 
 
 

Feasibility of linking universal child and family healthcare and financial counselling: findings from the Australian Healthier Wealthier Families (HWF) mixed-methods study

Objectives‘Healthier Wealthier Families’ (HWF) seeks to reduce financial hardship in the early years by embedding a referral pathway between Australia’s universal child and family health (CFH) services and financial counselling....

Determinan Financial Technology (FinTech) dan Dampaknya Terhadap Perilaku Keuangan UMKM

The presence of financial technology (fintech) brings alternative solutions for smooth business activities with various easy access. However, the solutions offered are still not fully accessible for use by MSMEs. The low financial literacy index of the Indonesian people, including MSME players, can be reflected in the financial behaviour of MSME players who take the financial system for granted; recording business financial flows is still common and only done simply. Based on this, this article aims to analyze financial behaviour as the impact of FinTech and financial literacy, as well as the role of FinTech in mediating the influence of financial literacy on financial behaviour. To find the answer, a survey method was used by involving 200 respondents in filling out a simple randomly selected questionnaire from MSMEs in the Polugadung Small Industry Village (PIK), East Jakarta. Data were analyzed using Partial Least Square - Structural Equation Modeling. The results show that FinTech and financial literacy have a significant positive influence on financial behaviour. Financial literacy also positively influences the use of FinTech, although its contribution is very low. FinTech only acts as a partial mediator between financial literacy and financial behaviour. The contribution of this study is that efforts to increase the use of FinTech in encouraging the progress of MSME players still need to be improved by the low financial literacy of MSME players, so intensive and massive efforts are needed to provide financial literacy education and training.

Financial Literacy and Investment Decisions in Nepalese Share Market

This study examines the role of financial literacy on the investment decisions of investors in the Nepalese share market. Financial literacy is expressed in personal saving, risk tolerance, investment options, and financial knowledge. The data were collected through a structured questionnaire using the convenience sampling method from 384 respondents of Kathmandu Valley. Pearson correlation and multiple regression analysis have been used to analyze data. The study results revealed a positive and significant relationship between the dimensions of financial literacy and investment decisions in the Nepalese share market. Low financial literacy and lack of financial information affect the ability to save and make sound financial decisions. Ignorance of basic financial concepts results in negative behavior in saving and investment decisions. The study suggests conducting financial education programs to help improve investors’ savings and financial decisions.

Crypto and financial literacy of cryptoasset owners versus non-owners: The role of gender differences

AbstractWe measure crypto and financial literacy using microdata from the Bank of Canada’s Bitcoin Omnibus Survey. Our crypto literacy measure is based on three questions covering basic aspects of Bitcoin. The financial literacy measure we use is based on three questions covering basic aspects of conventional finance (the “Big Three”). We find that a significant share of Canadian Bitcoin owners have low crypto knowledge and low financial literacy. We also find gender differences in crypto literacy among Bitcoin owners, with female owners scoring lower in Bitcoin knowledge than male owners. We do not, however, find significant gender differences in financial literacy amongst Bitcoin owners. In contrast, non-owners show gender differences in both crypto and financial literacy.

Financial literacy, stock market participation, and financial wellbeing in Germany

AbstractWe examine financial literacy in Germany and its relevance for financial wellbeing. Using data from the Panel on Household Finances collected in 2021, we show that about 62% of German households answer the Big Three financial literacy questions correctly. Those with lower education, who are out of the labor force, women, and those living in East Germany have lower levels of financial literacy. Identifying groups with lower financial literacy and developing strategies to reach them and enhance their abilities should therefore be an integral part of the German national financial literacy strategy. Financial literacy is linked to financial wellbeing: we document that those with higher financial literacy have a higher stock market participation rate and are less likely to report financial difficulties.

The Effect of Financial Literacy and Peers on Consumptive Behavior in Students of the Economic Education Study Program, University of Riau

The problem in this study is the low financial literacy and the high influence of peers which have an impact on the consumptive behavior of economic education students. This study aims to determine whether there is influence of financial literacy and peers on consumptive behavior in students of the economics education study program. This research was conducted at the Economics Education Study Program, with a population of 258 students and a sample of 91 respondents. The data collection instrument used was a questionnaire. The results of data analysis using multiple linear regression and hypothesis testing and concluded that financial literacy, peers, and influence on student consumptive behavior. From the results of the analysis of the significant value between financial literacy and consumptive behavior, it can be seen from the tcount 4.915 ttable 1.987 and a significant value (0.000 0.05). And for the significant value between peers on consumptive behavior seen from the tcount 6.744 ttable 1.987 and significant (0.000 0.05). Simultaneously (F test) is indicated by Fcount 26.818 3.10 Ftable with a significant value of 0.000 0.05. Thus, it can be concluded that financial literacy and peers have a positive and simultaneous influence on consumptive behavior in students of the Economics Education Study Program, University of Riau.

Analysis of the Influence of Financial Literacy on Financial Behavior Using Financial Technology as an Intervening Factor for Mekaar PNM Customers

Madani National Capital (PNM) was established as an effort taken by the government to become a financial management institution in advancing, maintaining and developing Micro, Small and Medium Enterprises (MSMEs). PNM is an institution that provides training for micro-entrepreneurs and is a strategic solution for the government to develop access to capital throughout Indonesia. PNM is expected to be able to become a financial institution that can create independent and resilient customers with one hundred percent of the shares held by the government. Financial literacy can be understood as knowledge, skills and beliefs that influence attitudes and behavior to improve the quality of decision making and financial management in an effort to achieve prosperity. Simply put, financial literacy is the ability to understand and apply effectively a wide range of financial skills, including personal finance management, budgeting and investing. A strong financial literacy foundation can support various life goals, such as saving for education and retirement, managing money productively, running a business, and being selective and using debt responsibly. People who have a high level of financial literacy, meaning they are financially literate, so they are not too vulnerable to financial fraud. Conversely, people with low financial literacy are referred to as people who are financially illiterate, so they are easily influenced and trapped in financial fraud. In conducting this research, the population was all Mekaar PNM customers in 5 Mekaar PNM units, 3 units in urban areas and 2 units in rural areas, totaling 15,549 customers

An omni-channel, outcomes-focused approach to scale digital health interventions in resource-limited populations: a case study.

Populations in resource-limited communities have low health awareness, low financial literacy levels, and inadequate access to primary healthcare, leading to low adoption of preventive health behaviours, low healthcare-seeking behaviours, and poor health outcomes. Healthcare providers have limited reach and insights, limiting their ability to design relevant products for resource limited settings. Our primary preventive health intervention, called the Saathealth family health interventions, is a scaled digital offering that aims to improve knowledge levels on various health topics, nudge positive behaviour changes, and drive improved health outcomes. This case study presents our learnings and best practices in scaling these digital health interventions in resource-limited settings and maximising their impact. We scaled the Saathealth interventions to cumulatively reach >10 million users across India using a multi-pronged approach: (1) ensuring localization and cultural relevance of the health content delivered through user research; (2) disseminating content using omni-channel approaches, which involved using diverse content types and multiple digital platforms; (3) using iterative product features such as gamification and artificial intelligence-based (AI-based) predictive models; (4) using real-time analytics to adapt the user's digital experience by using interactive content to drive them towards products and services and (5) experiments with sustainability models to yield some early successes. The Saathealth family health mobile app had >25,000 downloads and the intervention reached >873,000 users in India every month through the mobile app, Facebook, and Instagram combined, from the time period of February 2022 to January 2023. We repeatedly observed videos and quizzes to be the most popular content types across all digital channels being used. Our AI-based predictive models helped improve user retention and content consumption, contributing to the sustainability of the mobile apps. In addition to reaching a high number of users across India, our scaling strategies contributed to deepened engagement and improved health-seeking behaviour. We hope these strategies help guide the sustainable and impactful scaling of mobile health interventions in other resource-limited settings.

Analisis Perbedaan Perilaku Investasi Saham Antara Wanita dan Pria di Pasar Modal Indonesia

This study aims to analyze 1) Do women have a tendency to have low financial literacy compared to men in making stock investment decisions. 2) Do women have a tendency to be not overconfident than men in making stock investment decisions. 3) Do women have a tendency to have low risk tolerance compared to men in making stock investment decisions. 4) Do women have a tendency to herding behavior compared to men in making stock investment decisions. The novelty of this research from the previous one is that the author places more emphasis on gender differences in decision making when influenced by behavioral finance bias. This study uses quantitative methods with data collection techniques using questionnaires distributed through online media to investors with a sample of 146 investor respondents. The sample is distributed to respondents who are listed on the IDX of West Sumatra. The analytical method used in this research is descriptive analysis and Mann-Whitney test. The results of the study found 1) There is no significant difference between the financial literacy of women and men in making stock investment decisions. 2) There is a significant difference between overconfidence of women and men in making stock investment decisions, and female investors tend to be not overconfident than men in making stock investment decisions. 3) There is a significant difference between the risk tolerance of women and men in making stock investment decisions, and female investors tend to have low risk tolerance compared to men in making stock investment decisions. 4) There is a significant difference between the herding behavior of women and men in making stock investment decisions, but male investors tend to have high herding behavior compared to women in making stock investment decisions.

Historical Development of Frontier Stock Markets in Sub-Saharan Africa

Purpose: The purpose of this research is to review and compare the development of the three major frontier stock markets in Sub-Saharan Africa over time. The study provides some narrative around the historical development of each market as well as a theoretical backdrop for stock market development studies. Theoretical framework: The adaptive market hypothesis was used as the theoretical backdrop for the study. The adaptive market suggests that stock markets develop in an evolutionary manner (similar to natural selection). This evolution of stock market development is influenced by changes in investors’ behavior and regulatory standards. Design/methodology/approach: Data was collected from 1993 to 2020 on the IMF market efficiency score, the value of stocks traded, aggregate market capitalization, and the number of listed companies for the sample markets. The study used descriptive statistics and trend analysis to discuss and compare the stock market development indicators across the different selected frontier markets. Findings: The study discovered an improvement in stock market performance across the sample period. The Johannesburg Stock Exchange was found to be the most developed of the three stock exchanges. The Nigerian Stock Exchange was second while the Nairobi Stock Exchange was third. Some factors that erode the performance of these stock markets were also discussed. The practical and social implications: The sample stock markets are the major frontier markets, and so are often the first stop for foreign investors that want to penetrate the Sub-Saharan African markets. The performance of these markets often determines the level of foreign direct investment (FDI) and foreign portfolio investment (FPI) that flow into Africa. Originality/ Value: Few studies have investigated the performance of stock markets in Sub-Saharan Africa. Also, the few studies that investigate the performance of these markets rarely proceed to discuss the market-wide factors that erode the performance of these markets compared to those of developed economies. Some factors like the size of the economy, low financial literacy, misplaced government policies, poor investment culture, buy-and-hold-tight attitude, and high transaction costs were identified and discussed.

Financial literacy and its determinants and consequences: New survey evidence from Finland

AbstractWe examine financial literacy in Finland and its connection with various financial outcomes using novel survey data collected in 2023. While the overall Finnish financial literacy level is about average among the OECD countries, there is significant heterogeneity within the population. Women have lower financial literacy than men. The young and the old have lower financial literacy than respondents in their prime working age, and entrepreneurs have higher financial literacy than other groups. Financial literacy is also correlated with higher educational levels. We further study the relationship between financial literacy and a number of economic outcome variables. We find financial literacy to be negatively related to coping with a major expense, facing an income shock, and with perceived over-indebtedness. However, we do not find a statistically significant relationship between financial literacy and retirement planning in Finland.

Relation Between Financial Literacy and Carbon Footprint: Review on Implications for Sustainable Development

Introduction. Financial literacy has been recognized worldwide as a significant element of stability and economic and financial growth. With the evolution of financial instruments, the growing importance of financial inclusion, its correlation with financial literacy, and the effects they have on sustainability, the concept of financial literacy is dramatically changing and getting more inclusive, spreading the focus on sustainability, sustainable consumption, and environmental preservation.
 Aim and tasks. The aim of the study is to examine the connection between the population's financial literacy level and greenhouse gas emissions. The working hypothesis claims that there is a relationship between financial literacy and the carbon footprint.
 Results. The correlation and regression analyses were the main tools in the study, while the dataset for 2014 covered 137 countries, with the main dependent variables being carbon emissions per capita, per unit of gross domestic product, and per unit of energy. The partial correlation coefficients between financial literacy rating and carbon footprint variables were insignificant when controlled for economic development, represented by per capita gross domestic product. Estimated econometric models with financial literacy in quadratic form were adequate and showed a significant connection between financial literacy and carbon emissions per capita and per gross domestic product at the 5% level. The relationship with carbon emissions per unit of energy was significant at the 10% level. In all three models, the relationships followed an inverse U-shape, with low financial literacy increasing the carbon footprint and higher financial literacy decreasing it. The turning numbers for financial literacy were 35.8% for carbon emissions per capita, 41.4% for emissions per unit of gross domestic product, and 32.4% for emissions per unit of energy.
 Conclusions. Financial literacy was indeed associated with carbon emissions in a complex, non-linear way. The effect of energy consumption on carbon emissions was stronger than financial literacy and appeared to be the driving force for the increase in carbon emissions. With low financial literacy observed in underdeveloped countries, the situation was not favorable for the environment. As financial literacy increased, welfare, income, and consumption increased too, leading to an increase in greenhouse gas emissions, i.e., a bigger CO2 footprint. Once a certain stage of economic development was reached, the relationship was reversed, i.e., in developed countries, financial literacy worked towards reducing the carbon footprint and protecting the environment.