Financial literacy encourages individuals and society to improve their financial well-being. Hence, increase their capabilities to take part in economic life. This paper aims to investigate the impact of financial literacy on finance and economy. An extensive review of financial literacy literature is carried out, with a specific attention on its correlation with financial and economic aspects. This study unveils that financial literacy gives impacts on personal financial decisions, behaviour, saving and retirement, investment, financial risk tolerance, business, and national economy. This paper will be useful to economists and technologist about the importance of financial literacy with the suggestions on the role of financial technology (FinTech) in enhancing financial literacy, thus financial well-being as well as overall well-being towards industrial revolution 4.0 (IR 4.0).
There is a growing stream of research to seek for a solution to improve financial risk tolerance (FRT) in investment decisions, which is most likely conducted from financial institutions and was revealed that there are varieties of factors contribute to this aspect. The literature demonstrated that FRT is considered as the powerful factor that encourages investors’ intentions towards investments. Study shows that the FRT can be improved through positive financial behaviour. Hence it is essential to explore financial behaviour and FRT influences in investment decision from studies around the world and Malaysian market. Therefore, this wide discussion will benefit financial practitioners and institutions in financial practices. In addition, this study surely contribute some additional insights towards existing literature.
High financial risk tolerance level encourages investors’ participation in financial market. Thus, elevate their capabilities to achieve their financial goals and support national economic growth and well-being. This paper aims to investigate the factors affecting financial risk tolerance from studies around the globe. A comprehensive review of financial risk tolerance is carried out with a particular attention on factors that impact financial risk tolerance on financial decisions. This study indicates that financial risk tolerance can be explained by demographic profiles, psychology, social, geographical differences, and financial capability factors. These findings will be useful to professionals, technologists, and financial institutions to identify potential investors based on the indicators concluded with the suggestion on financial technology (FinTech) utilisation. Hence, encouraging participation in the Malaysian financial market during global health crisis and reaching economic well-being towards industrial revolution 4.0 (IR 4.0).
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.