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1 – 10 of over 82000David S. Murphy and Scott Yetmar
The purpose of this paper is to report on a survey about the personal financial planning attitudes of MBA students in the USA.
Abstract
Purpose
The purpose of this paper is to report on a survey about the personal financial planning attitudes of MBA students in the USA.
Design/methodology/approach
The study surveyed 206 MBA students about their attitudes to personal financial planning. Participants were asked about their level of knowledge, whether they had prepared components of a financial plan, where they might seek assistance in such a process and the criteria for selecting a financial planner. In addition, participants were asked to indicate their level of confidence in a financial plan's capacity to help them meet their long‐term needs and the likelihood that they would implement such a plan.
Findings
The findings indicate that, while most respondents feel both that financial planning is important and that they are interested in developing a financial plan, very few feel that they have the necessary skills and knowledge to prepare their own plan. In addition, the participants indicated a strong preference for professional personal financial planning advice. The study also indicates that less than 13 percent have prepared a comprehensive personal financial plan. When asked to identify the one professional from whom they would seek advice, certified financial planners were the preferred resource.
Research limitations/implications
While the results are not generalizable to the wider population, the views of this group are important because one might expect that educated individuals would be both more interested in personal financial planning and more capable of preparing their own plans compared with average Americans.
Practical implications
The study presents some implications for practice and financial literacy education from a US perspective.
Originality/value
A perceived need of respondents is to feel that their financial planner will put their needs first. While some professionals believe this to be the hallmark of “independence,” the respondents placed less importance on planner independence. In order to foster client confidence, planners must act in ways that convey clearly the primacy of their clients' needs.
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Kulondwa Safari, Charity Njoka and Mugisho Guershom Munkwa
The purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which…
Abstract
Purpose
The purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which is a Sub-Saharan underdeveloped country with a weak pension and social security system.
Design/methodology/approach
This study used a structural equation modeling and a sample of 361 public sector employees selected in Bukavu city in the DRC. The data were collected through a survey questionnaire, and the data were analyzed using SPSS and SMART PLS software.
Findings
The results from the study revealed that financial literacy has a significant impact on personal retirement planning. Two constructs of financial literacy, respectively, computation capability and financial knowledge were found to have a significant impact on personal retirement planning, while financial education and attitudes toward financial products were found not significant in explaining personal retirement planning.
Practical implications
The findings from this study can be used by policy makers in the DRC to design socioeconomic programs, aiming to increase the level of financial literacy in the country and awareness on personal retirement planning.
Originality/value
The reviewed studies were based mostly on developed countries, and countries were the social security system works effectively. We have not found a study on financial literacy and retirement planning that has been conducted in the DRC, which is a country with specific characteristics compared to developed countries.
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Francisco Guzman, Audhesh Paswan and Niranjan Tripathy
Personal finance influences everything we buy and is a key driver of all economies. It has attracted significant research attention, mostly grounded in rational economics…
Abstract
Purpose
Personal finance influences everything we buy and is a key driver of all economies. It has attracted significant research attention, mostly grounded in rational economics. However, it has not received adequate research attention in the consumer behavior literature. This study aims to address this gap by looking at some of the consumer-centric antecedents of short- and long-term personal financial planning, i.e. self-other orientation, cognitive style and time orientation.
Design/methodology/approach
A self-administered survey was used to collect data from full time employees. Hypotheses were tested using multiple regression analyses.
Findings
Both short- and long-term financial planning are positively associated with non-impulsive and analytical decision-making styles; whereas self and other orientation are only associated with short-term financial planning. Intuitive decision-making is not associated to either short- or long-term financial planning.
Research limitations/implications
While analytical and long-term orientation are still important for personal finance, in the short run, consumers are also driven by self and other orientation.
Practical implications
The results are relevant for both products and services that have long-term and short-term financial implications for consumers.
Originality/value
This study explores financial planning decision-making from a consumer behavior perspective, and addresses a gap in consumer behavior literature.
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M. Athar Murtuza and William Brunsen
This paper discusses the importance of close collaboration between practitioners and academics to address common concerns of the profession. Although there are a few institutions…
Abstract
This paper discusses the importance of close collaboration between practitioners and academics to address common concerns of the profession. Although there are a few institutions which offer a curriculum for the education of financial planners, most AACS Bschools do not offer such a program. A survey was conducted of AACSB member institutions to ask whether they offer personal financial planning (PFP) courses, if so, how many and whether they offer a major or degree in the field. The schools were also asked whether their advisory group(s) contained active business representatives and whether the advisory groups contained professional financial planners. Most of the respondents offer only one or two courses and these seem to include many personal budgeting or self‐improvement courses rather than part of a curriculum for a personal financial planning professional. Very few respondents offer a degree or major in financial planning. Although all the advisory groups seem to include active business people, there are very few members who were reported as professional personal financial planners.
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Against the backdrop of the Financial Services Authority's Retail Distribution Review, this study aims to present an assessment of the potential development of a UK personal…
Abstract
Purpose
Against the backdrop of the Financial Services Authority's Retail Distribution Review, this study aims to present an assessment of the potential development of a UK personal financial advising profession. The development of a profession dedicated to providing financial advice is critically discussed by assessing a range of regulatory and industry views.
Design/methodology/approach
The study indicates both a critical literature review and survey of retail financial services planning advisors. The critical literature review considers the market failures which surround the provision of financial planning advice in the UK. A survey of professionally qualified personal financial planning advisers ascertains perceptions of developments to the current regulatory framework to accommodate a more professionally based system of financial advice.
Findings
It is reported that a conflict between the current regulatory system and the traditional liberal model of the professions exist. This conflict inhibits the development of a financial services advising profession. Survey evidence collected from professionally qualified financial planning advisors bears out this perspective.
Research limitations/implications
Two key research implications emerge from this study. First, the development of a professional model of financial planning advising appears to be inhibited by the current regulatory system. Secondly, current regulation of financial services sales through a market mechanism appears to limit access to financial planning advice.
Practical implications
The study raises two key practical implications. First, the current system of regulating financial sales, appears to exclude a substantial segment of the population from access to professional financial planning services. Secondly, the development of a profession and increasing professional behaviour in retail financial services sales conflicts with the current model of regulation.
Originality/value
This research paper both reviews the wider arguments surrounding the regulation of retail financial services sales and forwards new evidence as to the attitudes of professionally qualified financial advisors towards regulatory change. This has importance in clarifying a number of the key policy concerns in the regulation of financial services sales.
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The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business activities…
Abstract
The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business activities in which the firms are engaged are outlined to provide background information for the reader.
This study introduces the concept of financial advice deserts (FADs), including financial advice received from personal financial advisors (PFAs) and Certified Financial Planners…
Abstract
Purpose
This study introduces the concept of financial advice deserts (FADs), including financial advice received from personal financial advisors (PFAs) and Certified Financial Planners™ (CFP professionals) and investigates the association between living in these FAD states and the retirement planning activities of individuals.
Design/methodology/approach
This study uses merged data gathered from multiple sources including (1) available state-level information on CFP professionals from the CFP board website, (2) state-level information on PFAs from the US Bureau of Labor Statistics and (3) individual levels of retirement planning behavior and other personal characteristics from the 2018 FINRA National Financial Capability Study. Using web data extraction tools and logistic regression analyses, this study examines the association between a series of individual retirement planning activities and living in the FAD states.
Findings
The study found that living in the FAD states was negatively associated with both having retirement accounts and contributing regularly to retirement accounts. Overall, the findings of this study underscore the need for providing greater access to financial advice and improving financial literacy among financially marginalized populations who are residing in FAD states in the United States of America.
Originality/value
This study makes unique contributions to the literature by raising the issue of geographic inequality in terms of access to financial advice and introducing the innovative notion of FADs. The findings provide fresh insights into the understanding of retirement planning and preparedness from the perspective of state-level inequality of financial advice through PFAs and CFP professionals, thereby expanding the previous knowledge that emphasizes only individual- and household-level differences. Significant implications for public policies and practitioners are also discussed.
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Habib Ahmed and Ak Md Hasnol Alwee Pg Md Salleh
This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with…
Abstract
Purpose
This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with contemporary notions of financial planning, financial inclusion and financial literacy that caters to the short-term and long-term financial goals of the poor.
Design/methodology/approach
Being a conceptual article, an inclusive IFP framework is described, analyzed and developed by integrating modern notions of financial inclusion, financial planning and financial literacy with the concepts of zakat and awqaf.
Findings
Using the notion of a hierarchy of needs and a financial planning model, an inclusive IFP framework that can be used by the poor is outlined. The complementary role of the non-poor households who provide funds for zakat and awqaf is also identified.
Research limitations/implications
The applicability of an inclusive IFP would require Islamic financial instruments and products, institutional development and existence of a social planner who can integrate zakat, awqaf and financial planning to serve the financial needs of the poor.
Social implications
Application of an inclusive IFP that can mitigate poverty would necessitate integrating financial planning skills and knowledge with traditional institutions of zakat and awqaf to provide holistic financial advice and services to the poor households.
Originality/value
Discussion of financial planning in financial inclusion literature is scant. The paper explores and offers a novel approach of poverty mitigation by utilizing the full spectrum of IFP that considers the financial needs and allows for the creation of a personalized financial plan for low-income households.
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Meysam Safari, Shaheen Mansori and Stephen Sesaiah
The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an emerging…
Abstract
Purpose
The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an emerging country.
Design/methodology/approach
This research is based on a public survey in Malaysia on the effect of five major contributing factors (namely, awareness, acceptability, affordability, accessibility and assurance) on the decision to hire a professional financial planner. The study further shed light into the difference among the influential factors among generation X and Y.
Findings
Although awareness, acceptability, affordability and assurance have demonstrated significant effect on decision making in general, their impact varies among different age groups. Results of moderation tests on the role of age suggest that for Gen X, the determinant factor is only their acceptability of the financial planning service. However, awareness, affordability, acceptability and assurance are critical factors for Gen Y respondents. In contrast to Gen Y, the Gen X respondents tend to have more awareness toward their needs for financial planning; they have gained enough experience to assess the credibility of the planner and test their assurance; and have higher earnings to afford the financial planners services.
Originality/value
Findings of this study are novel as it provide first hand picture from an emerging market in South-East Asia. Moreover, the study documents generation gap in financial decision making process.
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Lufthia Sevriana, Erie Febrian, Mokhamad Anwar and Yudi Ahmad Faisal
In Indonesia, the Islamic Economics and Finance Sector is growing rapidly, but the literature on Islamic financial literacy is still minimal. This study aims to show research…
Abstract
Purpose
In Indonesia, the Islamic Economics and Finance Sector is growing rapidly, but the literature on Islamic financial literacy is still minimal. This study aims to show research opportunities with the theme of Islamic financial literacy, especially inclusive Islamic financial planning through bibliometric analysis of Scopus and connected papers.
Design/methodology/approach
A comma separated value (CSV) file containing more than 2,000 references meta data was used for analysis on Vos Viewer in the period of 1963–2020. The grouping of network visualization maps is done using six keywords, namely, “Financial Literacy,” “Financial Inclusion,” “Islamic Financial Literacy,” “Financial Planning,” “Personal Finance” and “Household Finance.”
Findings
The findings complement the keywords that are generally used as references in the formation of theories regarding inclusive Islamic financial planning. After combining the “ris” file from the connected paper, the most used terms are financial knowledge, financial education, financial behavior, financial decision-making process, financial inclusion, risk sharing and financial discourse.
Originality/value
The proportion which planned to be applied in Indonesia will differentiate the inclusive Islamic financial planning framework from what has been done before. This study outlines the basis of the relevant literature review in the theme of Islamic financial literacy research, especially inclusive Islamic financial planning.
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