Low Level Of Financial Literacy Research Articles

Socioeconomic Influence on Physical Therapist Student Financial Literacy, Self-Efficacy, Stress, and Anxiety.

Doctor of Physical Therapy (DPT) students have considerable educational debt upon graduation with suspected low levels of financial literacy, limited financial self-efficacy, and elevated stress and anxiety. The purpose of this study was to determine the relationships between financial knowledge, financial anxiety, financial stress, and financial self-efficacy with socioeconomic determinants in DPT students. Five hundred seventy-eight DPT students, surveyed through a cross-sectional sample of convenience. Participants responded to a 40-item demographic questionnaire providing a self-assessment of their current financial literacy, financial self-efficacy, financial anxiety, financial stress, and level of general social support. Pairwise correlations were used to determine the relationship between independent variables and composite scores on self-assessment tools. Multiple regression analyses were conducted to predict financial knowledge, self-efficacy, anxiety, stress, and social support by socioeconomic indicators and educational debt status. While there was a moderate, positive association between presence of debt and financial self-efficacy and financial anxiety for all students (r = .55), there was no statistically significant difference in financial knowledge, self-efficacy, anxiety, stress, or social support for students based on race/ethnicity. There was a negligible to weak correlation between financial knowledge, financial self-efficacy, and level of financial anxiety based on age, race/ethnicity, gender, socioeconomic background, debt load, risk tolerance, and retirement reflection. When subjected to multiple regression analysis, the level of education-related debt could explain a large proportion of the variance in multiple measures, including financial self-efficacy, anxiety, and stress. Economic background explained a large proportion of variance in the general social support students felt. We found a strong, positive correlation between the presence of debt and financial stress and anxiety for all DPT student respondents. While there is no difference in financial literacy and self-efficacy based on race and ethnic background, there is a moderate correlation between self-efficacy and financial anxiety for all students. Education on strategies to manage debt load may reduce both factors.

An Investigation into the Level of Financial Literacy among Women in Rural and Urban Areas of Erode District

The present study focuses the financial literacy of rural and urban areas women in Erode district. In the volatile economy, financial literacy is very important role in every individuals life especially women. The low level of financial literacy cannot be able to know about the financial services provided by bank. This study reveals that with sample size of 40, rural and urban area women are how they financially strong and discriminated rural and urban women who mostly aware in traditional financial products. In this survey used primary and secondary data. The statistical tools used like percentage analysis, descriptive analysis and ANOVA.

The Breed of Finfluencer: Catalysts in Shaping Investment Choices

Niche social media influencer marketing groups have profoundly transformed the social media landscape, wielding their expertise and passion to engage the target audience within that niche. This trend is no different when it comes to financial influencers (Finfluencer). From stock market gurus to crypto experts, these influential people possess the knowledge, expertise, and experience to guide Social Media Users (SMU) towards successful investments. For this investigation, social media users actively engaged in investment discussions on social media platforms will also be referred to as retail investors. The study aims to analyse independent influence of two key determinants on SMU’s Investment choices: Finfluencer credibility and SMU’s Financial literacy levels. Though the variables are conceptually distinct, yet it is intertwined as the credibility reflects the external perception and financial literacy reflects internal knowledge of SMUs. The credibility variables of Finfluencer to be measured are trustworthiness, goodwill, and expertise. An online survey was distributed to respondents from across Chennai, Tamil Nadu, India. The findings revealed that Finfluencer Credibility has positive influence on the investment decisions. Furthermore, pointing out the significant influence of investors high and low financial literacy levels on investment decisions. The findings of the study will benefit finfluencers and retail investors (SMU) in several ways. In addition, it will have significant implications for Indian fintech companies.

Financial literacy and mortgage stress

This paper examines the effect of financial literacy on mortgage stress. Using data from the Panel Study of Income Dynamics (PSID), we find that borrowers with high levels of financial literacy are over 60 percent less likely to suffer from mortgage stress than borrowers with low levels of financial literacy after controlling for observables. Our findings remain robust to various potential issues, including sample selection bias and functional misspecifications. Moreover, we find that the effect of financial literacy varies across different age groups of borrowers. Further analysis reveals strong cross effects of financial literacy and quantitative reasoning on mortgage stress.

Survey of Medical Student Debt Status, Financial Literacy, and Desires for Financial Education

Objectives: The purpose of this study was to assess the financial literacy level of medical students, evaluate their perceptions about the importance of financial literacy, and determine the optimal timing and delivery for financial literacy education. Methods: From April to May 2019, a cross-sectional, anonymous, web-based survey was administered to a convenience sample of first-year (M1) to fourth-year (M4) medical students at the University of Michigan Medical School, with 216 of 680 (32%) students completing the survey. Respondents voluntarily answered 15 multiple choice questions on personal finance and 30 questions on their demographics, current financial situation, and opinions on financial literacy education. Individual financial proficiency was defined as answering 60% of the personal finance questions correctly. Results: Overall, respondents correctly answered 5.64 (38%) of the personal finance questions, with 41 (19%) students achieving financial proficiency. Lower performance on the financial literacy assessment was significantly associated with gender, age, and debt. Overall, 192 (89%) medical students believed that they should receive financial literacy training in medical school. Conclusions: Medical students demonstrate low levels of financial literacy and have a strong desire to improve their financial literacy during their medical education. Medical schools are well positioned to harness this interest for financial literacy education and integrate self-directed learning opportunities.

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

Abstract We 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.

ENHANCING ISLAMIC FINANCIAL LITERACY IN INDONESIAN YOUTH GENERATES BROADER SOCIETAL BENEFITS

Indonesia, with a predominantly Muslim population, exhibits low levels of financial literacy and Islamic financial literacy, despite a growing interest in Islamic banking. This research focuses on evaluating the financial literacy of young Indonesians and its relationship with Islamic financial literacy policies. The quantitative approach, based on a survey of 70 respondents, reveals that the youth in Indonesia possess moderate financial literacy and Islamic finance knowledge. Government policies, primarily centered around personal learning and online education, demonstrate limited efficacy in improving financial literacy among the youth. The study suggests that the low level of Islamic financial literacy cannot be solely attributed to existing policies, as other external factors play a significant role. The research emphasizes the need for a more comprehensive understanding of the multifaceted influences on the relationship between Islamic financial literacy and societal outcomes in Indonesia.

PENGARUH LITERASI KEUANGAN, DIGITAL PAYMENT DAN KEMAMPUAN MENYUSUN LAPORAN KEUANGAN TERHADAP KINERJA UMKM

MSMEs can drive the country's economic growth, however, the performance of MSMEs has experienced a slowdown due to the Covid 19 pandemic. So, this research aims to find out what factors can encourage the performance of MSMEs. This research uses internal and external organizational factors that can influence MSME performance, such as financial literacy, digital payment, and the ability to prepare financial reports. The population of this research is MSMEs in Bantul Regency. The sampling method uses a purposive sampling technique with the criteria of MSMEs that have used digital payments and financial records. The samples that can be used are 108 MSMEs in Bantul Regency. Data collection was carried out using a questionnaire method which was distributed offline by visiting MSMEs and online using Google from. Data processing uses the SPSS Statistics 26.0 application. Data were analyzed using multiple linear regression analysis. The research results show that financial literacy and the use of digital payments have no effect on MSME performance, while the ability to prepare financial reports has a positive effect on MSME performance. High or low levels of financial literacy and the use of digital payments do not affect the performance of MSMEs. Meanwhile, the higher the ability to prepare financial reports, the higher the performance of MSMEs will be. MSMEs that prepare financial reports can evaluate their business performance.

How to Improve the Efficiency of Financial Inclusion for Poverty Alleviation in China? An Empirical Analysis

ABSTRACT Financial inclusion has emerged as a new strategy to enhance family financial well-being and alleviate poverty in China and substantial financial resources have been devoted into revitalizing rural economic and social development to alleviate poverty. While research on financial usage, financial literacy, and financial well-being has received substantial attention in the consumer and financial industry, there is a significant research gap in the fields of social work and poverty alleviation. The study examined the relationship between financial usage, financial literacy and financial well-being in China utilizing the 2019 China Household Finance Survey data. The findings reveal a positive correlation between financial usage and enhanced financial well-being. Moreover, the study recognized that financial literacy mediates and moderates the relationship between financial usage and financial well-being. These findings indicated the significant role of financial literacy in increasing household per capita income and achieving balance between income and expenditures. However, low-income households not only possess less financial usage, but have lower levels of financial literacy as well compared to non-low-income households. Recognizing this reality, interventions aimed at improving the financial literacy of low-income households become particularly important. These interventions may significantly improve financial inclusion effectiveness in poverty alleviation.

ФІНАНСОВА ГРАМОТНІСТЬ ЯК ФАКТОР ЕКОНОМІЧНОГО ЗРОСТАННЯ ГРОМАДИ

The article highlights the problematic issues of financial literacy of the population. The necessity of increasing the level of financial literacy of the population is considered. Some aspects of the interaction between financial literacy and financial behavior of households are highlighted, taking into account current trends. It is determined that Ukraine has a low level of financial literacy of the population. The level of financial literacy is analyzed based on sociological studies and surveys of our citizens. It was found that half of Ukrainians have only a general idea of their income and expenses, which does not allow them to determine what is happening to their budget and where their money goes. Ukrainians practically do not use so-called investment services, in particular financial instruments such as stocks, bonds or investing in non-state pension or investment funds. Studies have shown that Ukrainians are not interested in news from the financial sector. It was determined that the most financially illiterate groups of the population are young people and the elderly. The study provides a clear breakdown of the level of financial illiteracy by age. At the same time, objective factors are also catalyzed by the appropriate mentality and inability to adapt to the market economy. The author substantiates the understanding that financial literacy implies the ability to effectively manage the budget; includes the ability to manage loans and debt; and has an understanding of the principles of investment. The existing ratings of financial literacy of the population of foreign countries are analyzed. It has been determined that even in countries where a modern system of economic education is being implemented, a significant number of citizens are poorly versed in personal finance. The factors that influence the level of financial literacy are systematized. It is substantiated that financial literacy is not only the key to financial well-being, but also an important element of personal development and life success. A financially literate population is able to prevent poverty, make more effective and informed financial decisions, promote the stable development of financial markets and stimulate economic growth in the country.

PENGARUH INKLUSI DAN LITERASI KEUANGAN TERHADAP KINERJA USAHA DENGAN KEBERLANJUTAN USAHA SEBAGAI VARIABEL INTERVENING PADA SEKTOR USAHA UMKM DI KOTA DEPOK

In Depok City, the MSME (Micro, Small and Medium Enterprises) business sector plays an important role in the local economy. However, most MSMEs in the city still face various challenges, including financial access issues and low financial literacy levels. Therefore, financial inclusion and financial literacy have the potential to have a positive impact on the business performance of MSMEs in Depok City. This study aims to test and analyze the effect of financial inclusion and financial literacy with business sustainability as an intervening variable in the MSME business sector in Depok City. This study involved MSME players in Depok City using the Non Probability sampling method with a population of 7911 which was processed using the Slovin formula into 100 research samples. The data were processed using the Partial Least Square- Structural Equation Modeling (PLS-SEM) method. This type of research is quantitative research, using primary data, the findings report that Financial Inclusion affects the Performance and Sustainability of MSME Businesses, Financial Literacy affects the Performance and Sustainability of MSME Businesses, as evidenced by Business Sustainability being able to mediate Financial Inclusion on MSME Performance and Business Sustainability being able to mediate Financial Literacy on MSME Performance. This can be a reference for MSME players to realize the importance of access to banking services to get the best results. finance so that it can improve the performance of MSMEs and their Business Sustainability. Based on the results of this study, many MSMEs continue to survive in their business activities, it is proven that they are able to survive for more than 5 years in Depok City.

How To Improve Financial Performance For Disable People Organizer?

Financial problems can be avoided by understanding the importance of financial literacy as a basic need. In general, vulnerable groups, including people with disabilities, have a low level of financial literacy and are categorized as a low income group, so it is still difficult to gain access to financial institutions, products and services. Therefore, there is a need for on going multi-sectoral education and assistance so that business groups with disabilities are more financially literate so that they can increase their financial independence and deserve financial services. This research aims to examine the impact of Financial Literacy, Financial Inclusion and Financial Technology on the Financial Performance of DPO Restu Abadi Puworejo. Data collection techniques in this research were obtained by observation, interviews, questionnaires, documentation and literature study. The population in this study were members of the DPO Restu Abadi Purworejo. The sampling technique used was purposive sampling with the criteria for members who had joined for more than 3 years, had an active business for 2 years and had consistent business income for 1 year, resulting in a total sample of 8 people. The data analysis techniques in this research are Multiple Linear Regression, Determination Test, and Hypothesis Test (T Test and F Test). Multiple regression analysis produces the equation Y=a+bX1+bX2+e. The regression results show that financial literacy, financial inclusion and financial technology have an impact on increasing the financial performance of DPO Restu Abadi Purworejo.

Инвестиционное поведение российской молодежи: проблемы адаптации в современных условиях

Based on the results of surveys of various age groups of the population, the article examines the investment behavior of Russians in modern conditions, focusing on the investment priorities of young people. It is noted that they are interested in and aware of digital tools for investing money, which contribute to higher savings and investment activity. At the same time, it is emphasized that the growth of their investment activity occurs against the background of a relatively low level of financial literacy of young people and unpreparedness for possible turbulence in financial markets, which may in the future lead to the opposite attitude and assessments of to-day’s young adults and, accordingly, have negative consequences for the economic and social development of the country as a whole. In the absence of foreign investment inflow, the preservation and development of the propensity to invest in the generation entering the labor market is a very urgent task.

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.

Sharia Financing Online Education: Mudhorobah, Musyarokah and Murobahah Financing

The majority of Indonesia's population is Muslim, which means that it has great potential to become a center for the development of Islamic finance, including Islamic banking. However, the results of an OJK survey found that only 21.48% of Indonesia's population is classified as well-intentioned. This shows the low level of financial literacy of the Indonesian people. It can be said that the development of Islamic finance in Indonesia which is still relatively low is due to the lack of financial literacy of the people. Therefore, this service aims to provide additional insight regarding the introduction of Islamic banking, products produced by Islamic banking, the benefits of using Islamic banking. It is hoped that with this discussion of information, public understanding regarding Islamic banking will increase. To carry out these activities, our team disseminates understanding of Islamic banking by providing information and opening discussions through posts we make on Instagram. In the future, it is hoped that the public will be able to pass on this information to a wider audience and be able to use Islamic banking wisely.

Financial literacy competencies of women in agribusiness and their financial experiences during a pandemic

Background: Women have generally lower levels of financial literacy than their male counterparts, regardless of country of origin. This financial literacy gender gap makes women more vulnerable to the effects of pandemics, like the coronavirus disease 2019 (COVID-19) pandemic.Aim: This study sought to examine financial literacy competencies of women in agribusiness and their financial experiences during the COVID-19 pandemic.Setting: The study was carried out in five agricultural districts namely, Gweru, Masvingo, Mutoko, Mount Darwin, and Mutare. The districts represented Zimbabwean agricultural regions.Methods: An embedded mixed methods research design was adopted where both qualitative and quantitative data were collected for analysis. Data were successfully collected from 216 women in agribusiness and follow-up interviews were conducted with 15 informants.Results: Women in agribusiness have poor financial literacy competencies. Most women in agribusiness practised only a range of 2–3 good financial behaviours out of the eight examined concepts, with only 10% scoring above the minimum expected score of six. During the pandemic, women in agribusiness lost income and failed to take care of household and business expenses.Conclusion: Women in agribusiness do not practise vital financial literacy competencies required for financial wellbeing and financial resilience. Therefore, the study recommends the implementation of training programmes that capacitate women with basic financial literacy competencies such as budgeting, saving, and retirement planning.Contribution: Financial literacy competencies were conceptualised together with financial experiences during a pandemic for the first time. More so, in the agribusiness sector which is crucial for economic development.

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

PurposeThe investment behaviour of individuals has been a major area of interest for several researchers and policymakers due to its great impact on the economy. This study aimed to assess the investment behaviour of individuals in light of their risk appetite and how financial literacy regulates this relationship.Design/methodology/approachA self-administered structured questionnaire was used to collect responses from individuals using purposive and convenience sampling techniques. Individuals were presented with 16 investment avenues widely offered by the Indian financial market to choose from to construct a hypothetical portfolio. The association between risk appetite, financial literacy and the composition of the hypothetical portfolio was analysed using a gologit model.FindingsIncreased risk appetite increased the probability of respondents creating a portfolio with a greater proportion of risky assets and less diversification. Lower levels of financial literacy pointed towards portfolios with traditional and low-risk avenues. The results also revealed a significant moderating impact of financial literacy on risk appetite and the creation of the type of a hypothetical portfolio.Research limitations/implicationsEven though the intended behaviour is a close estimate of actual behaviour, there is a possibility of deviation that cannot be ignored.Originality/valueThe present study provides insights into how individuals make portfolio choices by incorporating risk appetite and diversification factors whilst making investment decisions, thereby expanding the literature from an emerging economy perspective. The role of financial literacy as a moderator has not been studied in the domain of hypothetical portfolio creation in India, which has been empirically explored in the current study.

Analyzing the Effects of Financial Education on Financial Literacy and Financial Behaviour: A Randomized Field Experiment in Croatia

Abstract In this paper, we examined the financial attitude and financial behavior of students and determined their level of financial literacy through a survey. We found that female students report less interest in finance, have less confidence in their financial abilities, and have a lower financial literacy score than male students. On average, we can conclude that students have a low level of financial literacy. In this study we found factors that influence financial literacy which are age, student’s GPA, whether they already took some form of personal finance course, a proxy for numeracy, and place of birth in terms of a capital city. Furthermore, based on controlled experimental field research, we conducted financial training, and investigated causal evidence of the effectiveness of financial education. A training intervention to increase financial literacy was effective and improved financial attitude but increasing financial literacy through means of education was insufficient for making better financial decisions since students did not report a lower frequency of impulsive buying or a higher hypothetical savings rate. We found no evidence that female students were affected by this training any differently than male students.

Communication as a Tool: Enhancing Financial Inclusion in Capital Market through Hybrid Learning

The number of Indonesian capital market retail investors have been increasing in recent years. This trend shows a growing of investment opportunities, one of which is supported by the development of digital technology and enables individuals to access information to capital market with ease. However, based on the existing data shows a low level of financial literacy within the capital market, only 5%. Despite the increasement of the retail investors, there are still cases of investment fraud, with 5,523 reported complaints of investment fraud in Central Java. In response to this concern, PT Bursa Efek Indonesia provides free and open access for everyone through a comprehensive Sekolah Pasar Modal, organized by each Representative Office (Kantor Perwakilan) available in every province in Indonesia. Kantor Perwakilan BEI Jawa Tengah 1 conduced Sekolah Pasar Modal monthly and is carried out in a hybrid learning approach. This study is aimed to comprehensively and analyze the learning initiatives concerning capital market taught by Staff Trainer, analyzed using the Social Learning Theory, through the elements of Attention, Retention, Reproduction, and Motivation. This research is adopting a qualitative research, data collection is achieved by conducting interviews with the Staff Trainer and the Sekolah Pasar Modal’s offline and online participants, and observation during the learning process. The findings of this research were that the Staff Trainer provide numerous conceptual terms that resonates to the local culture resulted in a more relatable experience for the participants. Furthermore, it is found that the Staff Trainer frequently provides extrinsic motivation strategies during the learning process.

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.