Financial literacy among youth
08 Jan 2018-International Journal of Social Economics (Emerald Publishing Limited)-Vol. 45, Iss: 1, pp 173-186
TL;DR: In this paper, the authors analyse the level of financial literacy among youth in the world based on previous studies, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour.
Abstract: The purpose of this paper is to analyse the level of financial literacy among youth in the world based on previous studies. The study, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour. Strong endeavour of the world economies to improve the financial well-being of their citizens has contributed to the rising importance of financial literacy as it equips the individuals to take quality financial decisions to enhance their financial well-being.,This literature review consists of seven key sections. The first section of this paper reviews the conceptual definitions of youth. Second part summarises the literature on financial literacy. Third, fourth and fifth section summarises the literature on the components of financial literacy, i.e. financial knowledge, financial attitude and financial behaviour, respectively. Sixth section reviews the empirical studies on the influence of socio-economic and demographic factors on financial literacy level. Seventh section summarises the literature on interrelationship between financial knowledge, financial attitude and financial behaviour.,The study reveals that the financial literacy level among youth is low across the most part of the world that has become a cause of concern. Also, it has been observed that various socio-economic and demographic factors such as age, gender, income, marital status and educational attainment influence the financial literacy level of youth and there exists an interrelationship between financial knowledge, financial attitude and financial behaviour.,Youth have to live a longer life ahead, thus, the decisions taken by them are going to affect them for a longer period of time, making it imperative for them to develop an understanding of the world of finance so as to avoid wrong choice of financial products. Thus, financial literacy is of significant relevance. This paper aims to understand the influence of various factors influencing the financial literacy as understanding the factors that contribute to or detract from the acquisition of financial literacy among youth can help in making policy interventions targeted at youth to enhance their financial well-being.
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TL;DR: The small-scale sub-sector continues to be a fundamental catalyst for job creation and economic growth in Ghana as discussed by the authors, and about 35 per cent of labour is provided by the sub sector and shows the impo...
Abstract: The small-scale sub-sector continues to be a fundamental catalyst for job creation and economic growth in Ghana. About 35 per cent of labour is provided by the sub-sector and shows the impo...
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TL;DR: In this article, the authors investigated the relationship among digital financial literacy, current saving behavior, current spending behavior, and foresight of future spending and saving behavior among Independents.
Abstract: This paper investigates the relationship among digital financial literacy (DFL), current saving behavior, current spending behavior, and foresight of future spending and saving behavior among Indon...
27 citations
Cites background or result from "Financial literacy among youth"
...DFL, current saving behavior, current spending behavior, future saving foresight and FSB have 11 indicators, 9 indicators, 7 indicators, 8 indicators and 5 indicators, respectively....
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...Regarding the measures for DFL, Prasad and Meghwal (2017) and Morgan and Trinh (2019b, 2019c) proposed four dimensions of DFL including knowledge of digital financial products and services; experience in using digital financial products and services; awareness of digital financial risk; and skill in control and managing financial digital activities....
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...The RMSEA for DFL, current spending behavior, current saving behavior, FSB and future saving foresight were 0.000 (perfect fit), 0.024 (good fit), 0.000 (perfect fit), 0.000 (perfect fit) and 0.000 (perfect fit)....
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...Regarding the effect of social characteristics or social-economic standing such as age, income and education on DFL, Garg and Singh (2018), Yıldırım et al. (2017), Scheresberg (2013), Wangmo (2015), Nanziri and Olckers (2019), Morgan and Trinh (2019a) and Xue et al. (2019) found the different effects of social characteristics on financial literacy, which is expected to have the same results on DFL....
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...Regarding the effect of social characteristics or social-economic standing such as age, income and education on DFL, Garg and Singh (2018), Yıldırım et al. (2017), Scheresberg (2013), Wangmo (2015), Nanziri and Olckers (2019), Morgan and Trinh (2019a) and Xue et al. (2019) found the different…...
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01 Jan 2021
TL;DR: In this article, the collective impact of financial literacy and inclusion on individuals' financial capability focusing on the mediating role of financial behaviour is investigated, and the authors investigate the collective influence of financial inclusion and financial literacy on individual's financial capability.
Abstract: This paper investigates the collective impact of financial literacy and inclusion on individuals’ financial capability focusing on the mediating role of financial behaviour. The research is conduct...
25 citations
Cites background or result from "Financial literacy among youth"
...Many scholars and experts stated that financial literacy is inclusive of the three components: financial attitude, financial knowledge, and financial behaviour (Atkinson & Messy, 2012; Garg & Singh, 2018; Huston, 2010; Potrich et al., 2015; Santini et al., 2019)....
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...These findings are consistent with prior research (Fessler et al., 2019; Garg & Singh, 2018; Potrich et al., 2016)....
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TL;DR: In this paper, the authors investigated and measured the level of financial literacy and its variables within the academic community in Indonesia using a quantitative survey and were analyzed using structural equation modeling (SEM).
Abstract: DOI: 10.14254/2071789X.2020/13-3/9 ABSTRACT. The purpose of this study is to investigate and measure the level of financial literacy and its variables within the academic community in Indonesia. The strength of this study is that it extends the concept of financial literacy and its variables. This study explains how members of Indonesian academic community understood their financial literacy levels and the ways in which it can be improved. The study sample comprised 889 lecturers in Indonesia. The survey method was used to measure financial literacy and its variables which include subjective financial knowledge, financial behavior, financial experience, financial awareness, financial skills, financial capability, financial goal, and financial decisions, as reflected in individuals’ financial behavior. The research data were collected using a quantitative survey and were analyzed using structural equation modeling (SEM). The results confirm the relationships between financial literacy and its variables of financial awareness, financial behavior, financial experience, financial skills, subjective financial knowledge, financial capability, financial goals, and financial decisions. This study fills the gap in the literature related to the multi-variables of financial literacy. It provides information to assist policy-makers in developing strategies to increase financial literacy in society.
25 citations
Cites background from "Financial literacy among youth"
...Garg and Singh (2018) indicated that financial literacy among most young people worldwide is still low and is a cause for concern....
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References
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TL;DR: Ajzen, 1985, 1987, this article reviewed the theory of planned behavior and some unresolved issues and concluded that the theory is well supported by empirical evidence and that intention to perform behaviors of different kinds can be predicted with high accuracy from attitudes toward the behavior, subjective norms, and perceived behavioral control; and these intentions, together with perceptions of behavioral control, account for considerable variance in actual behavior.
65,095 citations
"Financial literacy among youth" refers background in this paper
...Financial attitude is the pre-disposition to behave in a particular manner formed due to some economic and non-economic beliefs possessed by the individual on the outcome of certain behaviour (Ajzen, 1991)....
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...4 Financial attitude Financial attitude is the pre-disposition to behave in a particular manner formed due to some economic and non-economic beliefs possessed by the individual on the outcome of certain behaviour (Ajzen, 1991)....
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01 Jan 2004
TL;DR: The theory of Planned Behaviour is one of the models most frequently used in the literature to explore pro-environmental behaviour including recycling, travel mode choice, energy consumption, water conservation, food choice, and ethical investment.
Abstract: The theory of Planned Behaviour is one of the models most frequently used in the literature to explore pro-environmental behaviour including recycling, travel mode choice, energy consumption, water conservation, food choice, and ethical investment (Stern, 2000; Staats, 2003). Armitage and Conner (2001) identified its application in 154 different contexts. The Theory of Planned Behaviour (Ajzen, 1988) assumes that the best prediction of behaviour is given by asking people if they are intending to behave in a certain way. Here we note that the intention will not express itself in behaviour if it is physically impossible to perform the behaviour or if unexpected barriers stand in the way. Assuming intention can explain behaviour, how can intention be explained?. According to Azjen, three determinants explain behavioural intention: 1. The attitude (opinions of oneself about the behaviour); 2. The subjective norm (opinions of others about the behaviour); 3. The perceived behavioural control (self-efficacy towards the behaviour).
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TL;DR: In this article, the authors evaluated the importance of financial literacy by studying its relation to the stock market: are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, they make use of questions measuring financial knowledge before investing in the stock markets.
Abstract: Individuals are increasingly put in charge of their financial security after retirement. Moreover, the supply of complex financial products has increased considerably over the years. However, we still have little or no information about whether individuals have the financial knowledge and skills to navigate this new financial environment. To better understand financial literacy and its relation to financial decision-making, we have devised two special modules for the DNB Household Survey. We have designed questions to measure numeracy and basic knowledge related to the working of inflation and interest rates, as well as questions to measure more advanced financial knowledge related to financial market instruments (stocks, bonds, and mutual funds). We evaluate the importance of financial literacy by studying its relation to the stock market: Are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, we make use of questions measuring financial knowledge before investing in the stock market. We find that, while the understanding of basic economic concepts related to inflation and interest rate compounding is far from perfect, it outperforms the limited knowledge of stocks and bonds, the concept of risk diversification, and the working of financial markets. We also find that the measurement of financial literacy is very sensitive to the wording of survey questions. This provides additional evidence for limited financial knowledge. Finally, we report evidence of an independent effect of financial literacy on stock market participation: Those who have low financial literacy are significantly less likely to invest in stocks.
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TL;DR: In this article, the authors evaluated the importance of financial literacy by studying its relation to the stock market: are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, they make use of questions measuring financial knowledge before investing in the stock markets.
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