Financial life-skills training and labor market outcomes in Indonesia

Financial self‐efficacy of consumers: A review and research agenda

“…After conducting an extensive literature study, a multitude of education and training predictors of FSE were identified such as financial life skills training (Grimes et al, 2022; Steinert et al, 2018), savings initiative programs (Loke et al, 2015), and financial planning curriculum (Danes et al, 1999; Danes & Haberman, 2007). As a critical determinant of FSE, financial planning allows consumers to exercise control and independence, fostering a greater sense of self‐assurance to attain the said objectives (Danes et al, 1999).…”

“…Consumers, who are financially educated have the necessary skills to manage their finances efficiently, such as creating budgets, allocating funds for unforeseen circumstances, and strategizing for future goals such as property ownership or retirement (Fox et al, 2005). When coupled with high FSE, consumers are more likely to follow through with their financial plans, adapt to changing circumstances, and persist in their efforts to improve their financial situation (Grimes et al, 2022). This combination empowers consumers to achieve financial security, reduce financial stress, and enhance their overall well‐being (Netemeyer et al, 2018) as they become less vulnerable to financial pitfalls, debt burdens, and predatory practices (Shim et al, 2019).…”

“…This section discusses the methodology and several analytical techniques utilized in 64 empirical investigations succinctly outlined in (Brooks & Williams, 2022;Furrebøe et al, 2023;Grimes et al, 2022;Noor et al, 2020;Reyers, 2019) and Ordinary Least Squares regression (Asebedo & Seay, 2018;Brady et al, 2021;Montford & Goldsmith, 2016;Salas-Velasco, 2022) followed by structural equation modeling (Asebedo et al, 2022;Bhatia et al, 2021;Fan, 2023;Hentzen et al, 2022;Kim, Falconier, & Conway, 2023;Lone & Bhat, 2022;Mathew et al, 2022;Oquaye et al, 2022).…”

“…The Journal of Consumer Affairs and the Journal of Financial Counselling and Planning are the prominent outlets, accounting for 25% (16/64) of the studies in the current sample. The studies concerning FSE has published in other eminent journals, such as the International Journal of Bank Marketing (Akhtar & Das, 2019; Lin & Huang, 2021; Losada‐Otálora & Alkire, 2019; Mindra et al, 2017; Naveed et al, 2021), and the Journal of Family and Economic Issues with five studies (Asebedo et al, 2022; Dare et al, 2022; Kim, Koo, & Jang, 2022; Robb, 2017; Vijaykumar, 2022), the International Journal of Consumer Studies with four studies (Fan, 2023; Hentzen et al, 2022; Montford & Goldsmith, 2016; Reyers, 2019), the International Review of Economics Education (Amagir et al, 2020; Grimes et al, 2022), the Investment Management and Financial Innovations (Mulasi et al, 2022; Sang, 2021) and the Journal of Behavioral Finance (Asebedo & Payne, 2019; Asebedo, Seay, et al, 2019) with two studies each. These academic journals publish research articles within the field of personal finance, behavioral economics, and consumer behavior, covering empirical, review, experimental, and conceptual studies.…”

“…While studies on FSE in particular (in contrast to self‐efficacy in general) are scarce, many researchers have been conducting research that can provide some direction on how self‐efficacy can be applied in a financial environment. For instance, researchers have investigated how FSE predicts financial behavior, well‐being, and satisfaction (Asebedo & Payne, 2019; Mathew et al, 2022); influences investment intentions (Bhatia et al, 2021); predicts financial vulnerability (Hoffmann et al, 2021); and the role of personality traits in determining financial risk tolerance (Brooks & Williams, 2021); as well as the impact of financial life skills training, financial socialization, and autonomy on FSE (Grimes et al, 2022; Vijaykumar, 2022). The psychological attributes of FSE are known to be both productive and protective, as consumers who possess higher degrees of FSE are more inclined towards establishing goals and exhibiting resilience when facing various hurdles and setbacks (Asebedo, Wilmarth, et al, 2019).…”