Search results

1 – 10 of over 131000
Article
Publication date: 8 September 2022

Jing Jian Xiao, Jin Huang, Kirti Goyal and Satish Kumar

This study aims to examine the literature on consumer financial capability. By analyzing the research trends, theories, definitions and themes, the literature on financial

Abstract

Purpose

This study aims to examine the literature on consumer financial capability. By analyzing the research trends, theories, definitions and themes, the literature on financial capability is synthesized, and agenda for future research is suggested. A framework is presented that portrays the antecedents as well as the outcomes of financial capability and their interlinkages.

Design/methodology/approach

Following a systematic approach, the review is based on 215 articles published during January 2007 and–March 2022, retrieved from Scopus. It presents the definitions and theories of financial capability, publication trends, influential articles, prominent authors, prolific journals and countries publishing on financial capability. Using bibliographic coupling, the intellectual structure of the topic is explored, along with offering a framework through content analysis.

Findings

The bibliographic coupling analysis identifies four major clusters of research themes and capability theory appeared to be the most prominent theory. The synthesis draws upon five conceptual definitions of financial capability. Based on the discussion, in this review, financial capability is defined as an individual ability to apply appropriate financial knowledge, perform desirable financial behaviors and take available financial opportunities for achieving financial well-being. A conceptual framework delineates the synthesized literature and propositions based on this framework and relevant research are proposed. Finally, directions for future research are discussed.

Originality/value

This paper is an attempt to offer a comprehensive synthesis of the scholarship on financial capability and its conceptualization. It further proposes an extensive future research agenda. The study has implications for financial services providers relating to retail bank marketing.

Details

International Journal of Bank Marketing, vol. 40 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 3 June 2022

Isha Bajaj and Mandeep Kaur

The purpose of this paper is to validate the measurement model of financial literacy in which financial literacy is a second-order construct with financial knowledge

Abstract

Purpose

The purpose of this paper is to validate the measurement model of financial literacy in which financial literacy is a second-order construct with financial knowledge, financial attitude and financial behavior as lower-order constructs.

Design/methodology/approach

The study is based on the primary data collected from 536 adult respondents of Punjab, India. Confirmatory factor analysis (CFA) has been used in the study.

Findings

Financial knowledge, financial attitude and financial behavior have significant correlation with each other and they converge to form a second-order construct–Financial Literacy. The model of financial literacy as a second-order construct (using CFA) is the perfect fit. The study also highlights that the financial literacy level of people differ significantly depending upon the age, gender, marital status, area of residence, qualification, monthly family income, employment status.

Practical implications

The study has major implications for policymakers. It confirms the claim that financial literacy is a combination of three components–financial knowledge, financial attitude and financial behavior. The national as well as international regulatory agencies working to promote financial literacy should realize that the overall financial literacy of people can be improved by imparting financial knowledge along with inculcating positive financial attitude and financial behavior among the masses.

Originality/value

The present study is the first study to validate financial literacy as a multidimensional model in the context of India to the best of our knowledge. The study contributes to the extant literature in the field of financial literacy by providing a strong framework for future research.

Article
Publication date: 19 April 2022

Lynn Ling Min Wee and Siew Ching Goy

The purpose of this paper is to examine the relationship between financial socialisation experiences, socio-economic factors, demographic characteristics and the financial

Abstract

Purpose

The purpose of this paper is to examine the relationship between financial socialisation experiences, socio-economic factors, demographic characteristics and the financial knowledge of first year undergraduate students.

Design/methodology/approach

Using a questionnaire, data were collected from a sample of 450 first year university students from both private and public universities. A multivariate regression method was adopted to examine the influence of financial socialisation among respondents of different ethnic groups and their social backgrounds on the individual's financial knowledge.

Findings

The findings indicate that: firstly, financial knowledge is low among first-year university students in Sarawak. Secondly, male respondents outperform female counterparts in terms of financial knowledge. Thirdly, parental financial socialisation remains the main source of financial knowledge among the students. Fourthly, there are significant differences in financial knowledge across ethnic groups.

Research limitations/implications

It is paramount to implement financial education programmes to elevate the financial literacy for both youth and parents since parents remain the primary source of financial socialisation for young adults.

Practical implications

The study suggests that financial knowledge varies according to gender and ethnicity. Hence, financial education programmes should be designed to accommodate the differences between groups based on ethnicity and gender to achieve the best outcome.

Originality/value

This is the first study that draws a representative sample of university students in Sarawak that examines the effects of ethnicity, gender and parental financial socialisation on financial knowledge among first year university students.

Details

International Journal of Social Economics, vol. 49 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 March 2022

Christi R. Wann, Beverly K. Brockman and Christopher M. Brockman

The purpose of this paper is to study the effect of credit record overconfidence on the use of alternative financial services (AFSs).

Abstract

Purpose

The purpose of this paper is to study the effect of credit record overconfidence on the use of alternative financial services (AFSs).

Design/methodology/approach

Using data from the 2018 National Financial Capability Study (NFCS), the authors estimate logistic regressions on the use of at least one AFS by adding a credit record confidence variable that captures deviations between self-assessments of credit record management and the number of reported behaviors that would negatively affect aspects of a Fair Isaac Corporation (FICO) score.

Findings

The authors find that respondents with credit record overconfidence have over two times higher odds (123.9%) of using AFS than the odds of respondents with financial knowledge overconfidence (46.8%), relative to their reference categories. When compared directly, those with only credit record overconfidence have 32.6% higher odds of using AFS than those with only financial knowledge overconfidence.

Practical implications

The results provide implications for education programs, not only for vulnerable groups at higher risk for AFS use but also for those with cognitive biases, such as credit record overconfidence. Potential solutions include personal financial education that includes debiasing and behavioral techniques for overconfidence.

Originality/value

This paper studies, for the first time, the effect of deviations between actual and perceived credit record management on AFS use.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 28 June 2018

Kumar Saurabh and Tanuj Nandan

The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial

1684

Abstract

Purpose

The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial behavior as a mediator after demonetization and introduction of GST.

Design/methodology/approach

The sample consisted responses of 286 individuals from the city of Allahabad, Uttar Pradesh, India and making financial decisions for the household for at least last two years. The data were analyzed using exploratory factor analysis and mediation regression analysis.

Findings

All sub-scales used to measure constructs had satisfactory reliabilities and internal consistencies. It was found that financial risk attitude and financial behavior both mediate the relationship between financial socialization and financial satisfaction as well as between financial knowledge and financial satisfaction.

Research limitations/implications

This research is based upon survey method and voluntary participation. Hence one can question generalization of findings to larger samples. Moreover, the study is limited to a restricted geographical region which could affect the generalization of findings.

Practical implications

Results provide insights into the antecedents of financial satisfaction of individuals from tier II city of India. Financial planners may utilize this study for enhancement of financial satisfaction of their clients and hence retention of the same.

Originality/value

A majority of researchers use survey without evaluation validity of instruments in the selected context and sample. This research contributed to the literature and practice by testing validation of constructs of financial satisfaction in India.

Details

South Asian Journal of Business Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 13 February 2019

Leonore Riitsalu and Rein Murakas

The purpose of this paper is to study how subjective and objective knowledge of finance, behaviour in managing personal finances and socio-economic status affect financial

2436

Abstract

Purpose

The purpose of this paper is to study how subjective and objective knowledge of finance, behaviour in managing personal finances and socio-economic status affect financial well-being.

Design/methodology/approach

The financial well-being score is constructed in quantitative financial literacy survey data from Estonia as the arithmetic mean of four statements on a five-point scale. Four hypotheses are tested in multiple regression analysis.

Findings

Subjective knowledge has a stronger relation with financial well-being than objective knowledge. Financial behaviour score and income level correlate with financial well-being.

Research limitations/implications

The paper contributes to literature on financial literacy, subjective financial knowledge and financial well-being. In future research, psychological factors and future orientated financial well-being should be included, and their relationship to subjective well-being could be analysed further.

Practical implications

The results highlight the importance of subjective knowledge and sound behaviour for improving financial well-being. Providers of financial services should address these more in the design of their services and communication.

Social implications

Policymakers developing national strategies for financial education need to address subjective financial knowledge for increasing financial well-being in society.

Originality/value

Knowledge, behaviour and subjective knowledge have not been used simultaneously in the analysis of financial well-being in Europe before.

Details

International Journal of Bank Marketing, vol. 37 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 8 January 2018

Neha Garg and Shveta Singh

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…

18937

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Social Economics, vol. 45 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 30 May 2018

Suri Weisfeld-Spolter, Fiona Sussan, Cindy Rippé and Stephen Gould

Debt is at a peak and consumers purport needing help with financial planning. To better understand the antecedents of financial planning behavior, the purpose of this…

1177

Abstract

Purpose

Debt is at a peak and consumers purport needing help with financial planning. To better understand the antecedents of financial planning behavior, the purpose of this paper is to examine the importance of cultural values in financial decision making within the context of Hispanic American consumers. A new conceptual model is proposed to integrate affect (cultural value) and cognition (financial knowledge) in financial planning.

Design/methodology/approach

To uncover respondents’ views on cultural values, financial knowledge, financial attitude, and financial planning behavior, an online survey hosted on a business school’s website was distributed to members of two Hispanic Chambers of Commerce. The survey consisted of five parts, and took each respondent an average of 15 minutes to complete. The final data set has 158 observations.

Findings

Results analyzed using structural equation modeling confirmed the hypotheses that financial knowledge, attitude, and perceived control simultaneously influence Hispanic consumers’ intentions to purchase financial planning products or services. More interestingly, these results confirm that multiple different routes coexist in the decision-making process, especially within the Hispanic financial planning context.

Originality/value

Key contributions of this paper include the conceptualization of cultural value as an antecedent to Hispanic financial behavior; detailing the different routes to financial decision making for US Hispanic consumers; and informing financial service managers on marketing strategies toward Hispanic consumers.

Details

International Journal of Bank Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 13 September 2018

Fatima Akhtar and Niladri Das

The purpose of this paper is to understand investment intention of prospective individual investors in a developing country (i.e. India) by using the “Theory of Planned…

3158

Abstract

Purpose

The purpose of this paper is to understand investment intention of prospective individual investors in a developing country (i.e. India) by using the “Theory of Planned Behaviour” (TPB) (where perceived behavioural control has been replaced with financial self-efficacy, FSE) and two additional constructs, i.e. financial knowledge and personality traits (i.e. risk-taking propensity and preference for innovation) have been introduced.

Design/methodology/approach

The study uses quantitative and cross-sectional approach wherein questionnaire based survey was done to collect responses from prospective individual investors (920 usable responses). AMOS and SPSS have been used to establish the hypothesised relationship between the constructs.

Findings

The results of the study suggested that attitude was responsible for partial mediation between the relationship of financial knowledge and investment intention, whereas financial self-efficacy was exerting a dual role on the relationship between personality traits and investment intention. Subjective norms, on the other hand, exerted a weak positive effect on investment intention.

Research limitations/implications

This study is limited to measure the investment intention in financial markets in case of prospective individual investors; it does not incorporate the actual investment behaviour, the study also fails to include demographic factors which play a vital role in investment decision making. Furthermore, the study has only considered objective dimension of financial knowledge.

Practical implications

The findings will be useful for financial service providers who need to enhance the FSE and financial knowledge and design a “behavioural portfolio” according the personality traits of their clients.

Social implications

The up-liftment of financial confidence among individuals in order to motivate them to participate in financial markets and enjoy “short-cuts” towards financial success.

Originality/value

This study is one of the initial attempts in the context of the Indian Stock Market to introduce FSE as a dual (both mediating and moderating) construct between personality traits and investment intention using TPB, moreover, this study also provides the necessary impetus to analyse the relationship between financial knowledge and investment intention with attitude as the mediating variable.

Details

International Journal of Bank Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 21 March 2016

Ani Caroline Grigion Potrich, Kelmara Mendes Vieira and Wesley Mendes-Da-Silva

The purpose of this paper is to build and compare models that assess university students’ financial literacy. Financial literacy, understood as the mastery of a set of…

7173

Abstract

Purpose

The purpose of this paper is to build and compare models that assess university students’ financial literacy. Financial literacy, understood as the mastery of a set of knowledge, attitudes and behaviors, has assumed a fundamental role in allowing and enabling people to make responsible decisions as they strive to attain financial wellbeing. To this end, models that integrate financial knowledge, behavior and attitude are integrated. The models are subsequently estimated, and many comparative tests are performed.

Design/methodology/approach

The study investigated a random sample of 534 university students attending public and private universities in southern Brazil. The choice of scale was based on consideration of the best adjustment for the Brazilian context, appropriate translation and content validation. For an analysis of the collected data, structural equation modeling was employed using two strategies.

Findings

The findings indicate that, in the model estimation stage, the scales for behavior and attitude have been reduced. Among all of the models estimated, the best adjusted model indicates that financial knowledge and financial attitude have positive impacts on financial behavior.

Research limitations/implications

The results are not generalizable to the wider population; to enable such generalization, different profiles should be researched using a larger sample. In practical terms, the financial behavior of Brazilian university students expresses the ability to establish long-term aims and saving aimed at future acquisitions and unexpected spending. This behavior is directly influenced by basic and advanced questions of financial knowledge and also by the importance attributed to attitude by establishing aims, control of spending and financial reserves.

Originality/value

This paper describes a pioneer study with respect to modeling financial literacy in Brazil. This topic can be improved as the need for rigorous evaluation of financial literacy grows at the same speed as the creation of more complex financial products.

Details

Management Research Review, vol. 39 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

1 – 10 of over 131000