Are Indian professional women financially literate and prepared for retirement?

Baker, H. Kent; Tomar, Sweta; Kumar, Satish; Verma, Deepak

doi:10.1111/joca.12332

Cited by 12 publications

(4 citation statements)

References 73 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Section: Discussion Of Results and Implicationsmentioning

confidence: 99%

“…When combined, this activity plus their improved financial preparation should result in an improved PFMB. According to studies, Indians exhibit poor levels of advanced financial literacy and are unaware of several advanced concepts related to managing money on a daily basis (Baker et al, 2021). Additional research indicates that financial awareness content should be included in school and college curriculum to increase financial understanding.…”

Section: 2mentioning

confidence: 99%

See 1 more Smart Citation

The direct and indirect effects of financial socialization and psychological characteristics on young professionals' personal financial management behavior

Goyal

Kumar

Hoffmann

2023

IJBM

Self Cite

View full text Add to dashboard Cite

PurposePrior work expresses concern about young people's rising debt and lack of financial preparedness. This study focuses on how financial socialization and psychological characteristics affect the personal financial management behavior (PFMB) of young professionals in India. The authors examine both the direct effect of these factors and the indirect effects through financial literacy and aforementioned psychological characteristics as mediators.Design/methodology/approachThe authors develop a conceptual framework based on the extant literature and empirically test its hypotheses employing partial least squares structural equation modelling (PLS-SEM).FindingsAttitude towards money, financial self-efficacy, financial risk tolerance, financial socialization through parental direct teaching and peers, and media are all positively associated with young professionals' PFMB, whereas external locus of control and procrastination are negatively associated with their PFMB. Almost all psychological characteristics partially mediate the association between financial socialization and PFMB. Finally, financial literacy plays a partially mediating role in the association between procrastination and PFMB as well as between financial socialization and PFMB.Practical implicationsThis study helps regulators and policymakers understand PFMB among young professionals. Interventions should build on the positive role of financial socialization, cultivating a good attitude towards money and financial self-efficacy, and reducing reliance on an external locus of control and procrastination. This study also helps policymakers and financial educators develop societally beneficial personal finance programs.Originality/valueThis research investigates social, psychological and cognitive characteristics in a comprehensive framework to further the authors’ understanding of the topic of PFMB.

show abstract

Section: Discussion Of Results and Implicationsmentioning

confidence: 99%

Section: 2mentioning

confidence: 99%

The direct and indirect effects of financial socialization and psychological characteristics on young professionals' personal financial management behavior

Goyal

Kumar

Hoffmann

2023

IJBM

Self Cite

View full text Add to dashboard Cite

show abstract

“…The gendered view about the effect of FL on FWB is specifically salient with respect to women. First, women (and minority groups) on account of their higher levels of vulnerability in society often tend to have differential access to information (compounded by demographic characteristics like profession and education) (Shobha and Shalini, 2015;Baker et al, 2021;Bindabel and Salim, 2021). Second, the FL and subsequent women's financial wellbeing has compounded implications at a societal level since women have longer lives and shorter work tenures than men (due to care-related career breaks) and overall lower earnings and pension pay outs than men (due to a persistent gender pay gap) (Fonseca et al, 2012).…”

Section: Theoretical Framework and Hypotheses Of Studymentioning

confidence: 99%

Financial education is precious than money-Examining the role of financial literacy in enhancing financial wellbeing among Saudi women

Badghish¹,

Ali²,

Yaqub³

et al. 2024

IJBPM

View full text Add to dashboard Cite

The study explores the role of financial literacy, financial socialisation, and certain demographic characteristics (such as income, education, father's education and mother's education) in enhancing financial wellbeing through developing/promoting financial self-efficacy and financial coping behaviours, among Saudi women. There is sparse research evidence available in the literature that examines the levels of financial literacy among Saudi women and how it contributes to their financial wellbeing and the related financial behaviours, this paper therefore, provides important evidence to bridge this important research gap. Based on PLS-based path modelling performed over a set of 1,338 responses from Saudi women, we found a significant positive effect of both the antecedents (i.e., financial literacy and the financial socialisation) on financial wellbeing mediated through financial self-efficacy and (financial) coping behaviours. Similarly, demographic characteristics including women respondents' income, education, father's education, and mother's education are partially positively related to financial self-efficacy as well as the financial coping behaviour. However, demographic characteristics were not seen to be significantly related to financial wellbeing. Besides bridging significant research gaps in the literature, this study provides practical implications for Saudi women to enhance their financial wellbeing through enhancing financial literacy and financial socialisation.

show abstract

“…Most demographic characteristics factors involving gender, race, marital status, and education level have been proven to affect retirement planning significantly. In detail, men (Baker et al, 2021), Whites (Kim et al, 2021), and young married people (Knoll et al, 2012) are less likely to suffer the risk of being in a financial dilemma during retirement. Moreover, Panu and Olli-Pekka (2018) suggested that increased education levels promote financial literacy, promoting consumer retirement planning, especially for women.…”

Section: Literature Reviewmentioning

confidence: 99%

How Overconfident Financial Knowledge Hinders Retirement Planning? Mediating Analysis and Heterogeneity of Retirement Funding Sources

Chen,

Fan,

Jiang

et al. 2024

Sage Open

View full text Add to dashboard Cite

Under the background of general financial knowledge confidence and insufficient retirement planning, this study investigates the relationship between overconfident financial knowledge and consumer retirement planning. Using data from the National Financial Capability Study, this study employs probit regressions and finds that consumers with overconfident financial knowledge are less likely to have retirement planning, that is, contribute to retirement accounts regularly. This study further explores the mediators in this relationship and concludes that consumers who are overconfident in their financial knowledge tend to be more preference to risk, fail to make ends meet, and do not care about their financial situation, therefore are less likely to plan for retirement. Furthermore, compared to retirement accounts such as 401(k) that are through an employer, consumers with overconfident financial knowledge are more willing to engage in those such as IRA that are not through an employer. This study also finds that underconfident financial knowledge, another type of incorrect subjective evaluation of financial knowledge, is positively associated with retirement planning. Based on these findings, this study recommends policymakers reduce financial knowledge overconfidence, guide individuals to regularly pay attention to their financial situation, and encourage employers to actively participate in retirement plans. JEL Classification: D12, N30, D80, D91.

show abstract

Are Indian professional women financially literate and prepared for retirement?

Cited by 12 publications

References 73 publications

The direct and indirect effects of financial socialization and psychological characteristics on young professionals' personal financial management behavior

The direct and indirect effects of financial socialization and psychological characteristics on young professionals' personal financial management behavior

Financial education is precious than money-Examining the role of financial literacy in enhancing financial wellbeing among Saudi women

How Overconfident Financial Knowledge Hinders Retirement Planning? Mediating Analysis and Heterogeneity of Retirement Funding Sources

Contact Info

Product

Resources

About