An Analysis of Personal Financial Literacy Among College Students

Chen, Haiyang; Volpe, Ronald P.

doi:10.1016/s1057-0810(99)80006-7

Cited by 1,243 publications

(1,343 citation statements)

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“…The borrowing section (B1 -B3) uses one question from the Financial Industry Regulatory Authority 2009 National Financial capability Study and two questions from the Jump$tart survey. 3 The insurance section (S1 -S2) uses one question from Chen and Volpe (1998) and one question from the Jump$tart survey. The survey does not attempt to measure all possible aspects of financial literacy because that would be overly long and A 15-year housing loan typically requires higher monthly payments than a 30-year housing loan but the total interest over the life of the loan will be less.…”

Section: Survey Designmentioning

confidence: 99%

The Connection between Financial Literacy and Numeracy: A Case Study from India

Jayaraman¹,

Jambunathan²,

Counselman³

2018

Numeracy

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Making financial decisions involves mathematical calculations, both simple and complex. It is a welldocumented fact that financial literacy levels among young people all over the world are quite low and that these low levels contribute to various undesirable outcomes with respect to personal financial well-being and the economy as a whole. This study explores the relationship between financial literacy and numeracy by measuring and modeling the relationship between financial literacy and numeracy levels among high school students (N = 586) in India. The results show a strong relationship between numeracy and financial literacy skills. Low numeracy is associated with a 4.8% reduction in financial literacy, while a high level of numeracy is associated with a 5.6% increase. This relationship is robust and held even when controlling for factors including gender, grade, education stream, level of financial education, language of instruction, parental involvement, parental education, family income, and future education plans. Because there is a strong relationship between numeracy and financial literacy, educational policy should consider increasing numeracy skills as one of the means of improving financial literacy. In particular numeracy as it relates to financial literacy (e.g., interest calculations, chart/data comparisons, and interpretations) should be promoted as part of the curriculum.

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Section: Survey Designmentioning

confidence: 99%

The Connection between Financial Literacy and Numeracy: A Case Study from India

Jayaraman¹,

Jambunathan²,

Counselman³

2018

Numeracy

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“…Barber and Odean (2001) justified that males being more likely to take risks than females because of their overconfidence where males are more confident than females. Moreover, Chen and Volpe (2002) suggested that differences in financial risk tolerance between males and females could affected by their understanding of financial knowledge. In another interpretation, Bernasek and Shwiff (2001) supposed that females are more exposure to poverty when they are older because weakness of their income over the lifetime.…”

Section: Demographic Determinants Of Financial Risk Tolerancementioning

confidence: 99%

“…Regardless of the academic background of the responder, their results showed that financial literacy has made a positive effect on financial risk tolerance. Chen and Volpe (1998) investigated the impact of financial literacy on financial opinions and decisions among 924 of American students. Their results showed that lower levels of financial literacy led to adopt wrong financial opinions and decisions.…”

Section: Demographic Determinants Of Financial Risk Tolerancementioning

confidence: 99%

Does Financial Literacy Moderate the Relationship among Demographic Characteristics and Financial Risk Tolerance? Evidence from Egypt

Shusha¹

2017

AABFJ

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Financial risk tolerance is certainly an important topic for researchers, investors and personal financial planners or consultants. This study purposed to investigate the effect of demographic characteristics on financial risk tolerance among Egyptians. A literature review of demographic determinants of financial risk tolerance showed dialectical results. Therefore, this study attempts to clarify the debatable issues in these results by studying the moderating role of financial literacy in relationships among demographic characteristics and financial risk tolerance. The study sample included 386 respondents representing different segments of Egyptian people. Using the hierarchical regression analysis, the results demonstrated that there were significant effects of gender, age, educational level and annual income on financial risk tolerance. Moreover, the financial literacy moderates the relationships among demographic characteristics of individuals and their tendency to take a risk. AbstractFinancial risk tolerance is certainly an important topic for researchers, investors and personal financial planners or consultants. The study purposed to investigate the effect of demographic characteristics on financial risk tolerance among Egyptians. A literature review of demographic determinants of financial risk tolerance showed dialectical results. Therefore, this study attempts to clarify the debatable of these results by studying the moderating role of financial literacy in relationships among demographic characteristics and financial risk tolerance. The study sample included 386 respondents representing different segments of Egyptian people. Using the hierarchical regression analysis, the results demonstrated that there were significant effects of gender, age, educational level and annual income on financial risk tolerance. Moreover, the financial literacy moderates the relationships among demographic characteristics of individuals and their tendency to take a risk.JEL Classification: N25, D14, D31, G02

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“…College is an investment and student loans bear interest, but in general young people will not have significant experience in these domains, particularly diversification of an investment portfolio and choosing whether to buy company stock. In national surveys of young adults conducted In the broadest existing studies of college students, Chen and Volpe (1998;2002) surveyed a thousand students at 14 colleges of varying types. Their analysis predated the basic three questions, but in Chen and Volpe (1998) students averaged 67% correct on general questions, 55% correct on questions regarding savings and borrowing, 59% correct on questions regarding insurance, and 42% correct on questions regarding investments.…”

Section: Inflationmentioning

confidence: 99%