An Inquiry into the Financial Literacy and Cognitive Ability of Farmers: Evidence from Rural India

Gaurav, Sarthak; Singh, Ashish

doi:10.1080/13600818.2012.703319

Cited by 57 publications

(54 citation statements)

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“…PRI (2005) considers financial literacy as a concept that "emphasizes objective knowledge on specific topics related to money, economics, or financial matters, and subjective measures of selfreported confidence". Financial literacy could be also defined as an ability of a person to understand and process information to be able to make a proper financial decision (Gaurav & Singh, 2012). Financial literacy is very often associated with knowledge on saving and borrowing, which means possessing sound financial management skills and habits in turn (Hogarth, Hilgert & Schuchardt, 2002).…”

Section: Literature Review Definition Of Financial Literacymentioning

confidence: 99%

Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

Gaisina

Kaidarova

2017

Rural Sustainability Research

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Abstract. In rural Kazakhstan, the credit and insurance services are limited and the state support is weak. Therefore, households' saving is crucial to provide an insurance against the economic and social shocks. The main goal of this study is to contribute to the literature on financial literacy in emerging economies, namely, the effect of financial literacy on saving rates of rural population. Being well educated not always means to be financial literate and make efficient decisions regarding one's own finance. People with a lower formal education level but with better experience in consuming financial products could be better prepared for making financial decisions including those related to savings. In this paper other socio-economic determinants of saving rates were taken into account, such as an income level, family size and an employment status. This research was carried out in Pavlodar region of Kazakhstan, and the data collection took place in spring 2014. In total, 405 households were surveyed. Results of the analysis show that if a respondent gives at least one correct answer, it positively affects the saving rates as well as one can observe that the higher the financial literacy level, the higher are the saving rates. Availability of state supported financial education programs for rural people will significantly contribute to the financial literacy improvement. At the same time, providing various and appropriate financial products in rural areas will motivate rural people to search for new knowledge and require authorities to intensify activities in this field.

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Section: Literature Review Definition Of Financial Literacymentioning

confidence: 99%

Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

Gaisina

Kaidarova

2017

Rural Sustainability Research

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“…Joo and Grable (2000) investigate the variables that determine financial satisfaction and concluded that financial satisfaction relates, either directly or indirectly, to financial knowledge, financial behaviour and financial solvency. Gaurav and Singh (2012) examine that farmers' education and financial experience are significantly correlated with their cognitive ability based on their achievements in tailored tests for ability in mathematics and probability. Conley and Udry (2010) show the gravity of informational networks as a potential bargaining chip for interventions such as financial education on pineapple farmers in Ghana.…”

Section: Empirical Reviewmentioning

confidence: 99%

“…From literature, key issues relating to sophistications and risk in the financial market remains as a main danger to financial literacy in the rural farming communities in emerging economies (Baah, 2009;Nunoo and Andoh, 2012). Xu and Zia (2012) and Gaurav and Singh (2012) conclude that there is a strong regional disparity in financial literacy. For instance, Xu and Zia (2012) find that 52% of urban adults have commercial bank accounts, versus 21% of rural adults.…”

Section: Introductionmentioning

confidence: 99%

Financial literacy of cocoa farmers in Ghana

Akoto¹,

Appiah

Turkson

2017

IJAF

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Approximately 800,000 farm families are spread over six of ten regions of Ghana while empirical evidence on cocoa farmers' financial literacy remains sparse. This study examines the level of personal finance literacy among cocoa farmers. It also examines whether gender, age, level of education and farm size are related to cocoa farmers' financial literacy. A structured questionnaire is employed to collect data from randomly selected 569 cocoa farmers in the Assin Foso and Twifo Praso districts of the Central region. We use logistic regression analysis to estimate whether cocoa farmers' demographic variables are related to their level of financial literacy. We find that cocoa farmers have lower levels of financial knowledge. The level of financial literacy of cocoa farmers in Ghana is also related to their geographical location, age and education levels. This study provides stakeholders in the finance industry with vital information that will enhance decision making and policy directions. This study contributes to the literature of financial literacy from the perspective of cocoa farmers in Ghana, a Sub-Sahara Africa country.

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“…The present evidence points to severe financial exclusion among households across all income groups (R. Pal & Pal, 2012) as well as rural farmers in India (Gaurav & Singh, 2012). Half of the households in the country are unbanked, and 90 per cent of the villages are not served by a bank or its branch (Singh et al, 2014).…”

Section: Financial Literacy In the Indian Contextmentioning

confidence: 69%

“…However, most of the studies in financial literacy have focused on populations in the developed economies on specific issues such as stock market participation, retirement planning, debt, and mortgages, and conclude that the populations have poor financial literacy (Lusardi, 2012;Lusardi & Mitchell, 2007, 2008. Financial illiteracy is more severe in developing economies (Gaurav & Singh, 2012;R. Pal & Pal, 2012).…”

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confidence: 99%

Numeracy and Financial Literacy of Forest-dependent Communities

Balakrishna

Virmani

2019

Vikalpa

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The article examines the numeracy and financial literacy of the Indian forest-dependent communities (FDC) involved in the joint forest management (JFM) programme, launched by the Government of India in 1990. An understanding of the financial literacy levels of the Indian FDCs may provide insights to policymakers regarding customized literacy programmes that can reduce exploitation from petty traders and local forest officials. The research draws sample data from FDCs of two geographical regions with differing resource endowments (Rayalaseema and the coastal region) in the Indian state of Andhra Pradesh. The results show that a third of the sampled members of the FDCs were able to answer the questions on probability and simple interest correctly. At least half of the sample had a clear idea on the time value of money and had less difficulty in computing when the mathematical questions were framed in the form of sentences which embedded situations from their daily lives. Participants, however, faced difficulty in recognizing mathematical symbols and performing simple computations in addition, subtraction, multiplication, and division. The average scores of the sample in the standard numeracy and financial literacy tests were 4.98 (out of 12 points) and 1.32 (out of 5 points), respectively. The study also identifies some socioeconomic determinants of (numeracy and) financial literacy. Education has a positive effect on both numeracy and financial literacy, while household size has a negative effect on numeracy, with no effect on financial literacy after controlling for education. Members of FDCs with habitations close to towns are likely to be more numerate and financially literate. The study calls for a deeper comprehension of financial literacy that addresses the nuances of participatory forest management. Rigorous public programmes for imparting financial literacy to the FDCs will not only make the JFM programme more successful but also provide employment avenues to the women in the FDCs. Financial literacy programmes would also facilitate the ongoing digital inclusion programmes undertaken by the government in forest agency areas.

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An Inquiry into the Financial Literacy and Cognitive Ability of Farmers: Evidence from Rural India

Cited by 57 publications

References 50 publications

Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

Financial literacy of cocoa farmers in Ghana

Numeracy and Financial Literacy of Forest-dependent Communities

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