Financial literacy among youth

Abstract

Purpose The purpose of this paper is to analyse the level of financial literacy among youth in the world based on previous studies. The study, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour. Strong endeavour of the world economies to improve the financial well-being of their citizens has contributed to the rising importance of financial literacy as it equips the individuals to take quality financial decisions to enhance their financial well-being. Design/methodology/approach This literature review consists of seven key sections. The first section of this paper reviews the conceptual definitions of youth. Second part summarises the literature on financial literacy. Third, fourth and fifth section summarises the literature on the components of financial literacy, i.e. financial knowledge, financial attitude and financial behaviour, respectively. Sixth section reviews the empirical studies on the influence of socio-economic and demographic factors on financial literacy level. Seventh section summarises the literature on interrelationship between financial knowledge, financial attitude and financial behaviour. Findings The study reveals that the financial literacy level among youth is low across the most part of the world that has become a cause of concern. Also, it has been observed that various socio-economic and demographic factors such as age, gender, income, marital status and educational attainment influence the financial literacy level of youth and there exists an interrelationship between financial knowledge, financial attitude and financial behaviour. Originality/value Youth have to live a longer life ahead, thus, the decisions taken by them are going to affect them for a longer period of time, making it imperative for them to develop an understanding of the world of finance so as to avoid wrong choice of financial products. Thus, financial literacy is of significant relevance. This paper aims to understand the influence of various factors influencing the financial literacy as understanding the factors that contribute to or detract from the acquisition of financial literacy among youth can help in making policy interventions targeted at youth to enhance their financial well-being.

Improving financial capability: the mediating role of financial behaviour

“…The current research findings show that appropriate financial attitude and financial knowledge are critical for achieving better levels in individuals' financial behaviour even in the context of a post-communist transition country like Albania. These findings are consistent with prior research (Fessler et al, 2019;Garg & Singh, 2018;Potrich et al, 2016). The present finding is a further addition to the existing literature.…”

“…A report from OECD (2013) defines financial literacy as a mixture of skill, behaviour, awareness, attitude, and knowledge, which are essential for sound financial decisions making for an individual to achieve the state of financial well-being. Many scholars and experts stated that financial literacy is inclusive of the three components: financial attitude, financial knowledge, and financial behaviour (Atkinson & Messy, 2012;Garg & Singh, 2018;Huston, 2010;Potrich et al, 2015;Santini et al, 2019). Thus, the above expositions expressed that financial literacy covered three broad concepts: financial attitude, financial knowledge, and financial behaviour.…”

Determinant of The Financial Literacy: Case Study on Career Woman in Indonesia

“…Hogarth and Hilgert, (2002) underline that middle age groups tend to have high financial literacy compared to young or old age groups. However, this research is different with Mouna and Anis (2017) and Garg and Singh (2018). They found that the financial literacy was affected by age, education level, and the annual income.…”

Antecedents Behavioral of The Millennial Generation Financial Management

“…Financial attitudes will be able to help financial behavior, including financial management, financial budgeting and decision making, therefore attitudes towards finance in this study will be able to influence financial behavior if the millennial generation has an attitude towards the rest of the money, attitudes toward budget and frugality. Financial behavior has been carried out by many financial researchers, especially behavioral financial management [7], [8], [9], [10], [11], as has also been linked to financial management behaviors associated with generations of differences [12 ], [13], [14], [15], [16], [17], however, research in the Indonesian context, which is associated with the behavior of the financial management of the millennial generation, has not been widely implemented. Therefore this paper tries to reveal the antecedents of millennial generation financial management behavior with two important variables, namely financial knowledge and attitudes towards finance.…”