Financial Literacy around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward

“…In addition, the new survey "financial literacy around the world" shows that 26% adults in Pakistan are financial literate (Klapper, Lusardi, & Van O, 2015). Moreover, "Finscope survey" (2009) indicated that in Pakistan 42% of people have saving accounts, 36% people are interested in saving account, 48% people use insurance and 22% people loan (Xu & Zia, 2012). The findings of the present study claim that Pakistani investors do not rely on their financial literacy while investing in portfolio.…”

Section: Discussionmentioning

confidence: 58%

Financial Literacy, Behavioral Biases and Investor's Portfolio Diversification: Empirical Study of an Emerging Stock Market

Anwar¹,

Khan²,

Rehman³

2017

j.financ.econ.res

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The purpose of this study is to check the impact of financial literacy and behavioral biases on investor's portfolio diversification. Data were collected through questionnaire using sample size of 181 investors trading in Pakistan Stock Market. The results indicate that financial literacy has insignificant and positive influence on investor's portfolio diversification, behavioral biases such as familiarity and availability biases have insignificant and negative while overconfidence bias has significant negative impact on investor's portfolio diversification. Portfolio size also has significant positive impact on portfolio diversification. The findings suggest the implementation of financial literacy programs to facilitate the investors, trading in different stocks. The implications for practice were discussed in detail.

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“…Source: Xu and Zia (2012); authors' calculations. Table 3 shows the results of the MasterCard Index of Financial Literacy survey (MasterCard 2013), which also illustrates the problem of comparability.…”

Section: Table 2: Selected Financial Literacy Survey Results From Aromentioning

confidence: 99%

Financial Education in Asia: Assessment and Recommendations

Yoshino

Morgan²,

Wignaraja

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of ADBI, the ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan AbstractThis paper assesses the case for promoting financial education in Asia. It argues that the benefits of investing in financial education can be substantial. Data are limited, but indicate low financial literacy scores for selected Asian countries. As economies develop, access to financial products and services will increase, but households and small and medium-sized enterprises need to be able to use the products and services wisely and effectively. More effective management of savings and investment can contribute to overall economic growth. Moreover, as societies age and fiscal resources become stretched, households will become increasingly responsible for their own retirement planning. Asia's evolving experience suggests that more national surveys of financial literacy are needed and that coherent, tailored national strategies for financial education are essential for success.

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Financial Literacy around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward

Cited by 254 publications

References 67 publications

Financial literacy and financial behavior: Evidence from the emerging Asian middle class

Financial literacy and financial behavior: Evidence from the emerging Asian middle class

Financial Literacy, Behavioral Biases and Investor's Portfolio Diversification: Empirical Study of an Emerging Stock Market

Financial Education in Asia: Assessment and Recommendations

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