Financial literacy, money management skill and credit card repayments

Hamid, Fazelina Sahul; Loke, Yiing Jia

doi:10.1111/ijcs.12614

Cited by 64 publications

(66 citation statements)

References 52 publications

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“…First, financial literacy has been found to affect both saving and investment behavior and debt management and borrowing practices (Hamid & Loke, 2020;Hastings & Mitchell, 2020;Lusardi & Tufano, 2009, 2015. Financial literacy mainly focuses on the understanding of economic and financial concepts and knowledge about financial instruments (Xiao, 2015).…”

Section: Financial Literacy As the Mediatormentioning

confidence: 99%

Consumer financial education and risky financial asset holding in China

Zhu

Xiao

2021

Int J Consumer Studies

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Risky financial asset holding is arguably a desirable financial behavior that contributes to consumer financial wellbeing. However, studies about associations between consumer financial education and risky financial asset holding in China remain limited. To fill this gap, using data from the 2015 China Household Finance Survey, this study examined the association between financial education and risky financial asset holdings and explored its mediators. Results from Probit regressions showed that financial education was positively associated with the household risky financial asset holding. Further analyses based on the mediating model found that financial literacy, economic and financial information search, and risk tolerance were mediating factors in the association between financial education and risky financial asset holding. The results have policy implications for improving consumer financial education and financial market participation.

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Section: Financial Literacy As the Mediatormentioning

confidence: 99%

Consumer financial education and risky financial asset holding in China

Zhu

Xiao

2021

Int J Consumer Studies

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“…Hamid and Locke [14] examined the relationship between socio-economic factors, financial literacy, money management skills, overspending and impulsiveness on credit card repayment decisions in Malaysia and showed that socio-economic factors related to education, income, ethnicity, marital status and number of credit cards had influences on credit card repayment decisions. The findings of that study support the argument that financial education and behavioral intervention that inculcate good money management skill are important in shaping individuals' behavior.…”

Section: Previous Researchmentioning

confidence: 99%

“…The Sustainable Development Goals (SDGs) are a collection of interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all". The 17 SDGs are: (1) No Poverty, (2) Zero Hunger, (3) Good Health and Well-being, (4) Quality Education, (5) Gender Equality, (6) Clean Water and Sanitation, (7) Affordable and Clean Energy, (8) Decent Work and Economic Growth, (9) Industry, Innovation and Infrastructure, (10) Reducing Inequality, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production, (13) Climate Action, (14) Life Below Water, (15) Life On Land, (16) Peace, Justice and Strong Institutions, and (17) Partnerships for the Goals. The importance of financial knowledge is in line with goal 3 concerning well-being and goal 4 concerning the importance of quality education.…”

Section: Introductionmentioning

confidence: 99%

Consumer Financial Knowledge and Cashless Payment Behavior for Sustainable Development in Poland

et al. 2021

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Financial knowledge is the main element of financial literacy, which is important for the sustainable development of individuals and society. Sustainability is a complex concept that spans many fields, including financial knowledge for all ages. Financial knowledge requires significant scientific research showing its impact on individuals and the economy, including non-cash payments. Consumer payment knowledge and its association with consumer financial behavior have long been a matter of widespread interest by researchers, but no in-depth, empirically based scientific research has been completed for Poland. The objective of this study was to examine factors associated with cashless payment behavior with an emphasis on the role of consumer financial knowledge. A total of 1100 interviews were carried out with Polish nationals aged 15 and above. The collected data were analyzed with the use of statistical methods, including analysis of variances (ANOVA), in order to examine consumers’ financial knowledge by basic economic and non-economic factors. Additionally, a data-mining method known as Random Forests was implemented for finding the variable importance in correlations between consumer financial knowledge and preferred methods of payment. The results revealed the diversity of factors influencing consumer behavior. Among the consumers’ personal traits, financial knowledge was one of the most important determinants of their payment choices. The results have implications for the design of payment processes. The results can be used by central banks to determine the directions of financial inclusion, as well as for stakeholders in the payments market.

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“…Due to its important role in consumers’ financial decisions, in the last 10 years, numerous researchers and institutions around the world have begun to take an interest in financial literacy (for a systematic review of the literature on the topic, see Goyal & Kumar, 2020). Studies have analysed financial literacy, so far, from two different points of view: its determinants (Agnew & Cameron‐Agnew, 2015; Atkinson & Messy, 2012; Beal & Delpachitra, 2003; Bongini et al., 2015, 2016; Chen & Volpe, 1998, 2002; Cucinelli et al., 2019; Cude et al., 2019; Ergün, 2018; Kadoya & Khan, 2020; Murendo & Mutsonziwa, 2017; Nicolini et al., 2013) and the relationship between consumers' financial literacy and their financial decisions (Bernheim, 1998; Delavande et al., 2008; Hamid & Loke, 2020; Hilgert et al., 2003; Jappelli & Padula, 2013; Lusardi, 2008; Mandell & Klein, 2009; Müller & Weber, 2010; Willis, 2009; Xiao et al., 2014; Xiao & O'Neill, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Per aspera ad astra: The big challenge of consumers' insurance literacy

Cucinelli

Lippi

Soana

2021

Int J Consumer Studies

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This paper is a pioneering study on the determinants of customers' insurance knowledge in the Italian market. The analysis considers differences between life and non‐life insurance. Our findings show that socio‐economic variables (specifically family income and financial fragility) and financial literacy play a fundamental role in explaining consumers' insurance knowledge. This result is confirmed for both life and non‐life insurance. Among socio‐demographic factors, gender, the number of children under 18 and the level of education are determinants of global insurance knowledge. However, distinguishing between life and non‐life insurance knowledge, we find the level of education affects the former, while gender and age influence the latter.

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Financial literacy, money management skill and credit card repayments

Cited by 64 publications

References 52 publications

Consumer financial education and risky financial asset holding in China

Consumer financial education and risky financial asset holding in China

Consumer Financial Knowledge and Cashless Payment Behavior for Sustainable Development in Poland

Per aspera ad astra: The big challenge of consumers' insurance literacy

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