Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

Stumm, Sophie von; Fenton-O’Creevy, Mark; Furnham, Adrian

doi:10.1016/j.paid.2012.09.019

Cited by 77 publications

(77 citation statements)

References 13 publications

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“…Almost all the workers had the opinion that recipients did not manage their finances well, and were thus unimpressed with recipients' ability to make ends meet. This is in contrast to the study that reported that making ends meet is a financial capability (Financial Service Authority, 2005;Kempson, 2009;Lusardi, 2011;Stumm et al, 2013).…”

Section: Workers' Views On People's Capability To Achieve Financial Icontrasting

confidence: 71%

“…The same research also found that people who are under the age of 40 and over the age 7 including aspects such as the everyday money management (Good Shepherd Microfinance, 2013a); staying informed (Corrie, 2012;Kempson, 2009;O'Donnell & Keeney, 2009 (Corrie, 2011;Financial Service Authority, 2005;Kempson, 2009;Lusardi, 2011;O'Donnell & Keeney, 2009;OECD International Network on Financial Education, 2015); savings or insurance held (Kempson, 2009); understanding consumer rights (Kempson, 2009); knowledge of where to get help or how to get redress (Corrie, 2012;Kempson, 2009); financial knowledge (Yoong, Mihaly, Bauhoff, Rabinovich, & Hung, 2013); and skills and knowledge to make financial decisions (Lusardi, 2011). 9 including planning ahead (Corrie, 2012;Financial Service Authority, 2005;Kempson, 2009;Lusardi, 2011;O'Donnell & Keeney, 2009;OECD International Network on Financial Education, 2011;Stumm et al, 2013); attitudes to financial planning (Kempson, 2009); and personal preferences and attitudes (Yoong et al, 2013).…”

Section: Financial Inclusion and Financial Capability Studiesmentioning

confidence: 99%

“…The skill to plan ahead is one of the identified skills in financial capability (Corrie, 2012;Financial Service Authority, 2005;Kempson, 2009;Lusardi, 2011;O'Donnell & Keeney, 2009;OECD International Network on Financial Education, 2011;Stumm et al, 2013). Planning ahead is linked to goal-setting.…”

Section: Savings Goalmentioning

confidence: 99%

“…People are thought to be less likely to fall into hardship when they have savings to act as a buffer to overcoming emergencies . In addition to reinforcing a savings habit as a financial capability, the nomination of an education savings goal in the Saver Plus program facilitated people's capacity to achieve financial capability in terms of having an ability to plan ahead, which has been identified as an indicator of financial capability (Corrie, 2012;Financial Service Authority, 2005;Kempson, 2009;Lusardi, 2011;O'Donnell & Keeney, 2009;OECD International Network on Financial Education, 2011;Stumm et al, 2013). The nomination of an education goal means recipients are spending money on goods that will bring a future benefit (Banerjee & Mullainathan, 2010) because a better education will likely lead a person to better-paying jobs (Sparreboom & Staneva, 2014).…”

Section: Financial Capabilitymentioning

confidence: 99%

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Successes and limitations of microfinance in addressing financial exclusion in south east Queensland, Australia

Ling¹

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This study examined the contributions and limitations of microfinance in addressing the financial exclusion of people on low incomes in Australia. This investigation differed from previous studies, in that it examined financial inclusion from the viewpoint of recipients' financial access and financial capability after completing a microfinance program. As its underpinning theoretical standpoint this study employed a social constructionist paradigm that emphasised people's experience and incorporated the four key concepts of the Capability Approach, namely functionings, capability, freedom and agency. The conceptual model situated people's ability to achieve financial inclusion from a consideration of the opportunities and barriers people encountered in their lives.This qualitative study explored the perceptions of recipients and workers of the contributions and limitations of two microfinance models in Australia. These two microfinance models are the "spendfirst" model as in the No Interest Loan Scheme (NILS) program and the "save-first" model as in AddsUP and Saver Plus matched savings programs. The research data was collected using semistructured interviews with microfinance recipients and program workers, using a purposive voluntary sampling method. A total of 37 people participated in semi-structured interviews, 17 from the "spendfirst" model, nine recipients from the "save-first" model, and 11 microfinance workers. Out of the 26 recipients, 17 were from a culturally and linguistically diverse (CALD) background and 11 of this group were from a refugee background. The data was analysed thematically.The two microfinance models made different contributions to people's ability to achieve financial inclusion. Recipients valued the "spend-first" model (NILS) as non-exploitive credit and as a "savings in reverse". The use of these loans was an alternative to using costlier forms of credit to meet immediate needs and to achieve functionings. This model also assisted CALD recipients from a refugee background to integrate into Australian communities and built trust with community members. By viewing the NILS model as a circular fund where repayments benefit others, this model fostered a strong sense of responsibility for migrants and non-migrants recipients alike. The "savefirst" model provided a one-off matched fund of up to $500 upon completion of the savings period.Both the matched savings programs emphasised developing a savings habit as the key to improving people's financial capability. The opportunity for interaction during Saver Plus's financial education classes contributed to recipients' social wellbeing by fostering a sense of community, enhancing recipients' social networks, and enabling sharing of financial ideas and information among recipients.The original conceptual framework was revised to contextualise the potential enhancers or inhibitors of the opportunities and barriers recipients encountered in their lives by examining their goals and iii values, individual abilities and their external en...

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Section: Workers' Views On People's Capability To Achieve Financial Icontrasting

confidence: 71%

Section: Financial Inclusion and Financial Capability Studiesmentioning

confidence: 99%

Section: Savings Goalmentioning

confidence: 99%

Section: Financial Capabilitymentioning

confidence: 99%

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Successes and limitations of microfinance in addressing financial exclusion in south east Queensland, Australia

Ling¹

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“…Luxury products are being marketed as symbol of success, achievement, happiness, and well-being. von Stumm, O'Creevy, and Furnham (2013) state that financial capability and money attitude influenced individuals' socioeconomic status. Money attitudes and financial capabilities have an adverse effect on financial stability.…”

Section: Discussionmentioning

confidence: 99%

Money Attitudes, Materialism, and Compulsiveness: Scale Development and Validation

Khare

2014

Journal of Global Marketing

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Compulsive buying behavior is a chronic shopping disorder. Compulsive buyers purchase products to quell feelings of anxiety and depression. Past research suggests positive relationship between money attitudes, materialism, and compulsiveness. Money attitude, materialism, and compulsiveness scales have been adapted by researchers to validate their applicability in different countries. Results have revealed new factors. These scales were used to check their validity and applicability on Indian sample. CFA findings revealed that original factors and model could not be confirmed completely on the Indian sample. The study identified new factors: three money attitude factors (power-prestige, anxiety, and price sensitivity), five materialism factors (success, status, centrality, achievement, and happiness), and compulsiveness (one factor).

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Personality, ideology, and money attitudes as correlates of financial literacy and competence

Fenton-O’Creevy

Furnham

2019

Fin Plan Rev

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This study looked at whether demographics, religious beliefs, political orientation, personality traits, and money attitudes are correlates of financial capability, knowledge and distress. Over 3,500 British participants completed multiple measures online. As hypothesized, demographics, religious beliefs, political orientation, personality traits, and money attitudes each explained unique variance in financial capability, financial knowledge, and financial distress. Regression and correlational results showed demographic factors particularly age, education, and income were significantly related to all criteria variables. Money attitudes explained additional variance in financial capability and distress beyond that explained by demography, ideology, and personality. Trait conscientiousness, money as security attitude, age, and income were most strongly correlated with financial capability and financial distress.

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Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

Cited by 77 publications

References 13 publications

Successes and limitations of microfinance in addressing financial exclusion in south east Queensland, Australia

Successes and limitations of microfinance in addressing financial exclusion in south east Queensland, Australia

Money Attitudes, Materialism, and Compulsiveness: Scale Development and Validation

Personality, ideology, and money attitudes as correlates of financial literacy and competence

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