Personal Financial Literacy Research Articles

STRESS TOLERANCE OF PEOPLE OF DIFFERENT AGES IN THE CONTEXT OF THEIR FINANCIAL LITERACY

The work is devoted to the analysis of the concept of “stress tolerance” in the context of personal financial literacy. An important aspect of this research is the study of age-related characteristics of people’s exposure to stress, hardiness, and constructive coping behaviour in situations of financial uncertainty. The results of the empirical study are presented and conclusions are drawn regarding the relationship between the level of financial literacy and stress tolerance of representatives of different age groups. The data presented in the article can form a basis for further research in this direction and substantiate the importance of developing financial literacy among people of different age categories.

Role of policyholders’ beliefs in life insurance lapses: a model building approach

Purpose This study aims to understand the lapse behavior of life insurance policyholders. Despite being accessible for nearly two centuries, only a small fraction of individuals purchase such policies and many of those who do let them lapse. The belief hypothesis model (BHM) is introduced to elucidate the correlation between policyholders' beliefs and their decisions regarding life insurance lapses. Design/methodology/approach BHM establishes a comprehensive linkage between core beliefs, external data and the lapse behavior exhibited by policyholders. To derive policyholders’ core beliefs about life insurance lapses, the authors conducted a semistructured, in-depth interview with 42 policyholders and 11 insurance advisors, using a grounded theory approach with zero-order, first-order and second-order coding. Findings The study's findings reveal that policy lapsation is influenced by various factors such as policyholders' beliefs about life insurance, process-related attitudes, trust in insurers and advisors and personal financial viewpoints. Policyholders who consider life insurance unnecessary or misunderstand its purpose are likelier to lapse their policies. Cumbersome documentation processes and technical issues also contribute to policy lapsation, emphasizing the significance of simplified procedures. Trust in insurers and advisors, personal financial literacy and payment preferences influence policy lapsation. Practical implications The findings of this research can be practically applied by companies to improve customer retention and by regulatory bodies to encourage policyholders to honor their insurance commitments. Originality/value Distinguishing itself from conventional hypotheses-driven and factor-centric models, BHM integrates consumer beliefs, thus enriching comprehension and decision-making insights.

Exploring Financial Behavior: A Qualitative Investigation into Psychological Factors Influencing Risk Preferences and Investment Decisions

This qualitative study investigates the psychological determinants influencing risk preferences and investment decisions. Grounded in phenomenology and interpretivism, the research aims to explore subjective experiences related to financial behavior. Employing purposive sampling, participants were selected based on diverse criteria. Data collection involved semi-structured interviews, participant observation, and document analysis. Thematic analysis revealed intricate interplays between personal experiences, cognitive biases, emotions, social influences, and financial literacy, shaping individuals' risk perceptions and decision-making processes. Findings underscore the multifaceted nature of financial behavior, highlighting the significance of personality traits, cognitive styles, and decision-making biases. Risk-averse individuals prioritized capital preservation, while sensation seekers pursued high-risk, high-reward investments. Moreover, individuals' self-efficacy influenced their investment strategies. Cognitive biases, such as overconfidence and loss aversion, further impacted investment decisions. The study emphasizes the importance of considering psychological factors in designing personalized financial interventions and educational programs. Future research directions include longitudinal studies, cross-cultural comparisons, and interdisciplinary approaches integrating insights from psychology, economics, and finance. This research contributes to the advancement of knowledge in behavioral finance and informs practical implications for financial advisors and policymakers, aiming to enhance individuals' financial well-being and decision-making competence.

Investigating Canadian Radiology Residents' Personal Financial Literacy: A Nation-Wide Assessment.

Purpose: Canadian resident physicians carry large debt to finance their education, which impacts their wellness and their future decision making. The objective of this observational study is to assess the financial literacy of Canadian radiology residents through testing their financial knowledge and examining their current financial status. Methods: A survey was designed to assess the financial literacy and current financial status of radiology residents, which was distributed to Canadian radiology residents via Google Forms. Descriptive analyses on preliminary data and the association between level of training and financial quiz scores were obtained. Results: 104 valid responses from 16 universities were received. The majority (53%) of residents indicated that their debt was greater than $150 000. Residents on average scored 71% on the financial quiz and the scores were not associated with training level (P = .71). The majority (89%) of residents indicated a strong interest in a formal financial literacy curriculum, with 80% preferring a physician-led curriculum. Conclusion: Overall, residents face a high debt burden. Current resident physicians value a formal financial literacy curriculum as a part of their residency program despite existing financial knowledge. Most importantly, residents feel that a curriculum created with involvement of other physicians would be optimal.

Enhancing personal financial literacy among young professionals: an impact study

This impact study intends to determine the significant relationship between the posttest score and personal finance topic controlling for the pretest score. From 2019 to 2023, the Business Cluster initiated a program to enhance the Personal Financial Literacy of Young Professionals through the seminar-workshop using the Quasi pretest-posttest experimental design. The Analysis of Covariance (ANCOVA) results proves a significant relationship exists between the posttest score and finance topic controlling for the pretest score. Moreover, this study confirmed that the seminar-workshop creates an environment conducive to active learning and engagement, positively impacting personal financial learning outcomes. Using the posthoc test proves that Investment is significantly higher than Budgeting, Decision, and Insurance, suggesting that Young Professionals are more interested in increasing their financial literacy investment than in other financial topics.

Can Access to Financial Markets Be an Important Option for Rural Families to Break the Return to Poverty Due to Illness in China?

Background: In China’s post-epidemic era, the income of rural households has decreased, and the function of property preservation and appreciation is expected to weaken, which gives the financial market an increasingly prominent role in blocking the barrier of poverty caused by disease. Method: Based on CHARLS data, this paper empirically explores the relationship between financial assets and health expenditure and catastrophic health expenditure (representing the incidence of return to poverty due to illness) to provide evidence for the development of financial markets to help stop the return to poverty due to illness and consolidate the achievements of poverty alleviation. Results: The results show that the influence of financial assets on the incidence of catastrophic health expenditures is significant and has a threshold effect. At the same time, financial assets have a greater impact than housing on preventing the return to poverty due to illness. Therefore, moving to the financial market can be a viable option for rural households to stop the return to poverty due to illness in the future. Policy suggestion: The government should standardize the development of the financial market and scientifically allocate financial resources to ensure the stable preservation and appreciation of household financial investment. Rural family members should actively improve personal financial literacy and reasonable planning of family assets to achieve stable preservation and appreciation of family financial investment.

The influence of innovation on personal financial management and financial literacy

Financial planning evaluates a person’s financial goals by identifying the necessary steps to achieve them according to their financial resources. With the increased influence of technology on day-to-day life and the countless innovations, incorporating new opportunities into the financial planning process increases the possibilities of achieving settled purposes. Using smartphone applications to manage personal finances improves economic behaviour, knowledge, attitudes, and motivation. In this study, we will analyse the changes brought about by using cash management applications among young people and through the delivery of a survey, we could gather their feedback. The answers are then analysed through SPSS Statistics, using Pearson correlation analysis. We measure the strength and direction of the relationship between variables related to what leads to using or not using cash management applications. At the end of the analyses, we conclude a weak positive relationship between using cash management applications and improving personal finances, according to Good Things Foundation (n.d.). From analysing the ties between smartphone usage and cash management apps, resulting in a fragile negative relationship, we conclude that the weak relationship between cash management apps and improved personal finances results from a low recognition in this typology of applications.

Students’ Perspectives of Transdisciplinary Financial Literacy Education in Ontario

In increasingly uncertain economic times, education curricula around the world are changing to include the topic of financial literacy for students. This article reports the findings of a financial literacy study that examined the perspectives of students on their experiences with transdisciplinary teaching and learning of personal financial literacy. In this study, 344 post-secondary students reflected on their educational experiences in Ontario secondary schools by completing a quantitative survey composed of questions and self-assessments related to personal financial literacy curricula. While students felt that personal financial literacy education was important, they felt that there was a need for more knowledge and understanding in secondary school. Further, survey data identified variations in the personal financial literacy education students received that was linked to the stream (advanced or general) students were enrolled in. The findings are discussed, with particular attention to how students’ perspectives can inform policy and curriculum design moving forward.

An Empirical Analysis on Financial Literacy Elements Influencing Financial Wellbeing Amongst Selected Academicians in Gujarat

One of the Governments of India's key initiatives is the promotion of financial literacy. In our culture, teachers/ academicians are among the most powerful figures. They can serve as role models for their pupils and aid in their development as socially and financially responsible adults by practicing good personal finance management and financial literacy. When it comes to making decisions about investments, financial literacy has grown to be a crucial component of a person's existence. The purpose of the study is to determine the extent to which financial well-being, particularly among academicians, is impacted by elements of financial literacy.

The Impact of Personal Financial Literacy on the Choice of Lending Channel by Vietnamese Householders Who Just Escaped Poverty

Purpose: The Newly-Escaped-Poverty-List householders (NEPLH) in Vietnam served as the survey subjects for this study, which sought to determine the impact of "Personal Financial Literacy" on "The Probability of Using Lending Services of Vietnam Bank for Social Policies (P_VBSP)" and "The Probability of Using Informal Private Lending Services (P_ILC)". Design/methodology/approach: Survey data were collected from 186 respondents, by structured online questionnaire with convenient non-probability sampling technique. Aspects of personal financial literacy (FLi) such as personal financial knowledge (FL1), personal financial skills (FL2), personal financial attitude (FL3), and personal financial behavior (FL4) are measured. When respondents were divided into groups based on subgroup criteria (CVj), such as gender, age, marital status, role in the family, career, education level, religion, and number of years since being removed from the list of poor households, ANOVA techniques were used to examine differences in various aspects of personal financial literacy. The impact of FLi and subgroup variables (CVj) on P_VBSP and P_ILC was assessed using the binary logistic regression analysis technique. Findings: Research results show that there is a statistical difference in the average score of FL1, FL2, FL3 and FL4. The research findings also show that FL2, FL4, and "Career Status – CAR" have a positive impact on P_VBSP, while "Aged group - AGE", "Education level - EDU", and "Number of years since being removed from the list of poor households - YEAR" have a negative impact on P_VBSP. Meanwhile, the P_ILC is positive influenced by the AGE factor and moves in the opposite direction of FL2, FL4, EDU, and YEAR. Research, Practical & Social implications: The research findings provide the basis for governance implications as well as policy recommendations to promote financial literacy among the NEPLH in Vietnam, encouraging them access policy lending services from the Vietnam Bank for Social Policies, and at the same time help them stay away from informal private lending services, thereby helping them to reduce poverty and achieve sustainable economic development family. Originality/value: A theoretical framework for personal finance literacy, including (i) financial knowledge, (ii) financial attitude, (iii) financial skills, and (iv) financial behavior, has been developed by the authors after reviewing earlier studies. At the same time, it is more significant to measure financial literacy by objective assessment than relying on the subjective self-assessment of each respondent in the context of actual study in Vietnam. In the model analyzing the influence of personal financial literacy on the decision of Newly-Escaped-Poverty-List householders in choosing the Vietnam Bank for Social Policies or Informal Private Credit Channels, the authors also took into account additional factors including gender, age group, marital status, role in the family, career, education level, religion, and number of years since being removed from the list of poor households.

An Analysis of Personal Financial Literacy among Teachers in Secondary Schools

The aspect of literacy in the education sector has been aligned to the ability to read and write. Therefore, scholars have suggested that teachers are the most endowed professionals in relation to academic literacy, but there are a few studies conducted to determine teacher’s financial literacy. The main objective of the study was to analyse personal financial literacy among teachers in secondary schools. The study sampled 354 secondary school teachers from ten government secondary schools between the ages 24 and 55 years. Using qualitative and quantitative methods (Mixed method) and a questionnaire/interview guide to collect data, the results of the study revealed that financial literacy levels among secondary school teachers demonstrate that teachers in areas of long term planning attitude shows high or positive results while the aspects of saving, spending behaviour and tracking finances through record keeping was low or negative results. However, some teachers demonstrated some considerable financial knowledge on the concept of financial literacy with a percentage of 44% and also performed below par on the segment of spending and keeping financial records. Therefore, the study recommended, strengthening of financial literacy in the teacher education curriculum, various teacher organisations and unions provide seminars on financial literacy for their members to ensure that they are financially secure and the need for a collaboration between the Ministry of Education and the Ministry of Finance to develop mechanisms of disseminating information materials on financial literacy to teachers. This study is significant as it could be used as an evaluation tool for the national strategy on financial education (NSFE II) for Zambia (2019 –2024) which sets out the framework for improving financial education in Zambia.

A Study on Personal Financial Planning in UK and India with the Help of Case Studies

Financial planning is becoming one of the most important parts of life in the world. In this study, we discuss about personal financial planning, financial literacy, and software applications. We have done this by examining two scenarios: India and the UK. For this study, we took cases of personal financial planning done in the UK and India to gain clarity. We had joined an organization to understand this topic and prepare this research paper. We tried to find out how financial planning is done in the UK and what type of software is used by UK people to invest and plan their future. Similarly, we have studied which type of software and method was used to invest and plan future by Indian people; we also found out how Indian and UK organizations provided financial services and which method they used, as well as how the different government rules and regulation effected personal financial planning in both countries. We have done this topic based on case study by using real-time case. We also try to study the differences between Indian people and UK people toward future planning and investment.

A study on personal financial planning in UK and India withthe help of case studies

Financial planning is becoming one of the most important parts of life in the world. In this study, we discuss about personal financial planning, financial literacy, and software applications. We have done this by examining two scenarios: India and the UK. For this study, we took cases of personal financial planning done in the UK and India to gain clarity. We had joined an organization to understand this topic and prepare this research paper. We tried to find out how financial planning is done in the UK and what type of software is used by UK people to invest and plan their future. Similarly, we have studied which type of software and method was used to invest and plan future by Indian people; we also found out how Indian and UK organizations provided financial services and which method they used, as well as how the different government rules and regulation effected personal financial planning in both countries. We have done this topic based on case study by using real-time case. We also try to study the differences between Indian people and UK people toward future planning and investment.

Personal financial literacy among Indian postgraduate residents.

Background Postgraduate residents' ability to understand and effectively manage their finances is variable. We conducted this study to assess the awareness of personal financial literacy among Indian residents. Methods We circulated a web-based cross-sectional Google Forms multiple-choice questionnaire having questions in three categories including financial awareness, current financial status and plans among 400 Indian residents. Results A total of 215 Indian residents (53.75%) responded to the survey (men 80.9%, unmarried 74.4% and pursuing broad specialties 83.3%). The majority were unaware of stocks, special student/doctor loans, tax planning, life insurance, professional indemnity and tax/financial planning. The majority opined that personal finance and investing should be taught at medical school/residency. A financial pyramid based on the hierarchy of needs is proposed. Conclusion Lack of financial literacy and planning was seen among the majority of Indian residents. Our study highlights this gap in the medical curriculum and the need for formal structured financial education during training.

Investing in Students With Extensive Support Needs: Steps to Integrate Personal Financial Literacy in Inclusive Settings for Educators, Students, and Families

Financial education is vital to improving financial literacy for students with extensive support needs (ESN) to be successful in real-world scenarios and improve financial behaviors. Financial literacy skills should be taught and explored within the mathematics curriculum (Newman et al., 2009) in inclusive settings by both general and special educators with sensitivity to the needs of the students and families. This article introduces a series of steps that allow educators to integrate financial literacy skills in both inclusive school and community-based settings to support students and their families in the process. These steps include (a) assessing financial literacy skills, (b) gathering financial literacy resources, (c) integrating financial literacy activities in inclusive settings, and (d) monitoring and reflecting on financial literacy progress, of all stakeholders including educators, students, and their families. The article also includes financial literacy resources, a sample lesson plan, recommended financial literacy and transition-based learning goals, and guiding questions for families to support financial literacy for students with ESN.

Towards an Understanding of FinTech Users’ Adoption: Intention and e-Loyalty Post-COVID-19 from a Developing Country Perspective

Earlier literature has shown that the implementation of FinTech innovations is not only determined by banks, financial institutions, or government support, but also by the perception and experiences of FinTech users. FinTech research has shown encouraging findings from scholars in developed countries. However, little is known about the users’ acceptance and use of FinTech in Jordan. The aim of this study is to investigate the determinants of users’ intentions and e-Loyalty toward FinTech adoption in Jordan post the COVID-19 era. A conceptual framework was developed by integrating the four original constructs of the unified theory of acceptance and use of technology (UTAUT), namely performance expectancy (PE), effort expectancy (EE), social influence (SI), and facilitating conditions (FC), with three additional factors: personal innovativeness (PI), financial literacy (FL), and uncertainty avoidance (UA). In addition, the proposed model considered the e-Loyalty of FinTech users as a consequence of having a good FinTech experience. A quantitative approach using a cross-sectional online questionnaire was applied to collect data from 423 FinTech users. Data were analyzed utilizing structural equation modeling (SEM) based on AMOS 26.0 software package. The findings revealed that UA has a moderating effect on the relationship between FC and users’ intentions. Also, PI has a significant impact on PE and EE. While PE, SI, and FC are factors that enhance behavioral intentions. In return, it builds users’ e-Loyalty toward FinTech services and is deemed a new normal behavior. This study may help FinTech service providers and policymakers better understand the, currently relatively low, usage rate of FinTech, and how it contributes to the development of strategies that boost the acceptance and e-Loyalty of FinTech by Jordanian users after the COVID-19 era, where FinTech is still considered an innovation.

The concept of financial literacy in the research of Ivan Prokopenko and foreign experts

The article is devoted to the disclosure of the essence of financial literacy as a key competence of a modern young person through the prism of the professional development of Ivan Prokopenko and foreign specialists. The research used methods – comparative historical, analysis, synthesis.
 In the article, the author revealed the key concept as a person's ability to understand and use financial skills, including managing personal finances, budgeting and investing, understanding certain financial principles and concepts such as: time value of money, compound interest, debt management and financial planning.
 The author noted in the article that Ivan Prokopenko paid considerable attention to the formation of students' financial literacy, the implementation of European standards of understanding and technologies for the formation of this competence.
 It is also stated that in the context of the formation of personal financial literacy in the educational process, I. Prokopenko stood for the positions of people-centeredness and a systemic approach. In developing the issue of meaningful and methodical support, the academician oriented the applicants to the formation of the ability to make conscious financial decisions. In this regard, issues of social and economic security, financial independence became crucial. This vision became the basis for the implementation of the initiative to introduce an individual learning trajectory for students of different levels of education at the G. S. Skovoroda Kharkiv National Pedagogical University
 The comparative analysis made it possible to distinguish the worldview target component, the practical competence component, and the strategic subject component in the content of the studied concept. In the research work of I. Prokopenko, U. Baitsakhan, M. Demertzis, A.T. Pasha, H. Picatosta, E.M. Hergins are expressive in their outlook on the target component.
 We see the study of global and national experience of financial literacy formation in force majeure conditions, when situations of uncertainty affect national and global economic systems, as a promising direction for further scientific research

Study on the Impact of Financial Literacy of the Rural Population on Microfinance: In Association with the Middeniya East Grama Niladhari Division, Sri Lanka

The research focuses on the poverty-stricken rural communities that use the sector's state and commercialized micro-products: To empower the people associated with the microfinance sector economically and socially and To eradicate poverty in the rural community and raise the standard of living and To find out to what extent personal financial literacy has become a decisive factor The research employed a questionnaire to collect empirical data from 100 households by using random sampling in the Middeniya East Grama Sewa Division, which uses microfinance facilities. Accordingly, personal financial literacy was considered the intrinsic variable, and the efficiency of using financial facilities was used as the extrinsic variable. While reviewing information on personal financial literacy, a lot of data was gathered by presenting questions related to basic financial and advanced basic literacy. Accordingly, a standard multiple regression analysis was carried out to identify the impact of literacy on microfinance affairs. The finding of the multiple regression model was M= -27.7129+ 0.410357L+0.324577AFL. The two intrinsic variables, basic financial literacy and advanced financial literacy showed a corresponding connection related to rural people's micro financial dealings. The performance of utilization of microfinance depends on the person's basic and advanced financial literacy. Accordingly, when basic financial literacy and advanced financial literacy increase, the performance of utilization of microfinance increases.

A Comparative Study on the Impact of Financial Literacy and Overconfidence on Risk Attitudes

Based on the data of the NFCS in the United States in 2012 and 2015, we measured the level of personal financial literacy and financial literacy overconfidence. By using the Ordered Probit model empirical research, we found that financial literacy and risk appetite were significantly positively correlated, but the positive correlation between financial literacy overconfidence and risk appetite were even tighter. The results of the study showed that people with higher financial literacy levels had greater willingness to take risks, but if there were overconfidence in financial literacy, their risk appetite will be greater.

A bibliometric analysis on personal financial management and financial literacy: Trends and future directions

A bibliometric analysis on personal financial management and financial literacy: Trends and future directions