Impact of financial literacy models on the financial behavior of individuals: An empirical study on the Indian context

Bhandare, Purushottam; Guha, Samapti; Chaudhury, Rimita Hom; Ghosh, Chandralekha

doi:10.1002/jsc.2431

Cited by 8 publications

(7 citation statements)

References 30 publications

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“…This underscores the crucial role of financial knowledge as a tool and decision-making factor in financial management. While we expected Gen Z (born between 2000 and2005) to demonstrate this knowledge in their financial management of savings, investments, insurance, credit cards, and deposits, our research suggests otherwise. This highlights the need for further investigation into the factors influencing Gen Z's financial behaviour despite potentially having good financial knowledge.…”

Section: Discussionmentioning

confidence: 71%

“…Complementing the existing research, Bhandare (2021) further explains in his research on the influence of financial literacy models on individual financial behaviour that there are two models, namely the logit and Fairlie decomposition models, which found variations in the financial habits of people with formal and semi-formal literacy in financial literacy.…”

Section: Financial Literacymentioning

confidence: 95%

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Determinants of Financial Management Skills Among Indonesia’s Gen Z

Iqbal Raditya Maulana,

Sadamsyah,

Miranda Tanjung

2024

daengku j. hum. soc. sci. innov.

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New to the workforce, Gen Z's financial management skills are crucial. This study explores how factors like financial literacy, family education from family, financial attitude, hedonism lifestyle and financial knowledge on Generation Z’s financial management skills. A survey of 257 Gen Z members explored financial management skills using Structural Equation Modelling (SEM) analysis via SmartPLS 3.0 software. Financial education from family, hedonism lifestyle, and financial knowledge has no significant impact on Generation Z’s financial management skills. however, financial literacy and financial attitude have an impact. Research implications This Research's findings impact policymakers, financial institutions and academic. Academic institutions should provide sufficient financial education for Generation Z to empower them on financial choices. Policymakers must encourage prudent financial habits among Generation Z. This research focuses on Generation Z who are new to the workforce and many of the variations in the determinants of financial management skills have not been explored in previous research.

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Section: Discussionmentioning

confidence: 71%

Section: Financial Literacymentioning

confidence: 95%

Determinants of Financial Management Skills Among Indonesia’s Gen Z

Iqbal Raditya Maulana,

Sadamsyah,

Miranda Tanjung

2024

daengku j. hum. soc. sci. innov.

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“…It improves individual financial behavior by providing financial education in schools and increasing financial literacy from a young age (Bhandare et al, 2021;Lusardi, 2019;Amagir et al, 2018). That statement is also consistent with the results of research (Ünlüer, 2021;Barmaki and Şener, 2017) that it is necessary to improve students' financial literacy skills from a young age because acquiring financial knowledge as a teenager facilitates making and implementing financial decisions as adults.…”

Section: The Effect Of Financial Education Towards the Business Finan...mentioning

confidence: 99%

“…According to opinion Dar and Mishra (2021) that capital in SMEs education, knowledge, experience, and skills. Beyond these, some factors lead to increased preconceived financial behavior through knowledge and experience in the learning process or training (Bhandare et al, 2021). To improve individual financial behavior, financial education in schools is necessary from an early age (Amagiret al, 2018;Lusardi, 2019).…”

Section: Introductionmentioning

confidence: 99%

A Quasi-Experiment Of Improved Financial Literacy Business On The Young Entrepreneur

Purnamasari,

Sugiharti,

Fauziyah

2023

JASET

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Abstrak Literasi keuangan merupakan kombinasi dari kesadaran, pengetahuan, keterampilan, sikap dan perilaku yang harus dimiliki oleh seseorang untuk membuat keputusan keuangan yang sehat dan akhirnya mencapai kesejahteraan keuangan. Hasil penelitian sebelumnya menunjukkan, tingkat literasi keuangan pemula wirausaha muda yang rendah, membuat mereka rentan mengalami kegagalan dalam pengambilan keputusan keuangan dengan kelompok usaha baru. Penelitian ini dilakukan untuk mengetahui peran pendidikan keuangan dan pengetahuan risiko bisnis terhadap peningkatan literasi keuangan di kalangan pengusaha muda pemula. Dengan mengambil objek anggota Koperasi Mahasiswa (KOPMA) Universitas Pendidikan Indonesia. Pendekatan penelitian yang digunakan adalah metode eksperimen buatan, dengan rancangan faktorial 3x2. Hasil penelitian menunjukkan pelatihan edukasi keuangan untuk meningkatkan literasi keuangan bisnis pada wirausaha muda. Peningkatan tingkat literasi keuangan pengusaha muda membantu mereka mengambil keputusan keuangan yang lebih baik dan membantu pertumbuhan bisnis yang sedang berjalan. Dengan mengetahui resiko bisnis yang akan dihadapi, pengusaha pemula dapat mempersiapkan diri menghadapi tantangan bisnis yang ada dan mampu mempertahankan usahanya di tengah banyaknya persaingan bisnis. Untuk wirausaha muda dengan tingkat literasi keuangan yang rendah, diperlukan pengembangan dan metode penyampaian lain yang dapat membantu mereka meningkatkan literasi bisnis, untuk tingkat literasi keuangan yang tinggi, pengelolaan keuangan dan pengambilan keputusan keuangan yang bertanggung jawab harus dipertahankan bahkan setelah wirausaha telah menyelesaikan pendidikan formalnya. Kata Kunci: desain eksperimental semu, literasi keuangan, pendidikan keuangan, risiko bisnis AbstractFinancial literacy is a combination of awareness, knowledge, skills, attitudes, and behaviors that someone must own to make healthy financial decisions and reach economic well-being. The results of previous studies show that young entrepreneurs' budding financial literacy rates are low, making them vulnerable to experiencing failure regarding financial decision-making with the new venture group. This research was conducted to determine the role of financial education and knowledge of business risks in increasing financial literacy among young entrepreneurs and budding businesses by taking objects from members of KOPMA Universitas Pendidikan Indonesia students. The research approach used is a method of artificial experiments with a factorial design 3x2. The results showed that financial education training increases financial literacy business for young entrepreneurs. The increase in the level of financial literacy of young entrepreneurs helps them make better financial decisions and supports the growth of the currently running companies. By knowing the business risks that will be faced, novice entrepreneurs can prepare themselves to meet the challenges of existing businesses and be able to maintain their business in the middle of a business competition. Development and another delivery method are needed for young entrepreneurs with low financial literacy levels, which can help them improve their business literacy. Financial management and responsible financial decision-making should be sustained even after the entrepreneurs have finished their formal education for a high financial literacy level. Keywords: quasi-experimental design, financial literacy, financial education, business risks

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“…11 Training (Froelich et al, 2015;Vijaykumar and Naidu, 2016;Patel and Jha, 2020). Bhandare et al, 2021;Banciu et al, 2022). 5 7 Financial knowledge (Hudon, 2008;Reeves and Sabharwal, 2013;Ghosh and Guha, 2019;Xiong and You, 2019;Hasan and Hoque, 2021).…”

Section: Variable Coveragementioning

confidence: 99%

Financial Literacy Variables in Microfinance Institutions studies: A Systematic Literature Review

Magali

2023

huria

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The study applied a systematic literature review to explore financial literacy variables in microfinance institution (MFI) studies. Using manual content analysis, 73 studies identified variables covered in MFIs' financial literacy literature. The study revealed that the majority of scholars have assessed the role of financial literacy in promoting clients' savings, money and mobile money usage, loan repayment and investment. However, few studies focused on variables such as outreach, budgeting, interest rates and women's empowerment. In most of the reviewed studies, regression data analysis was used. The findings indicate that there is a dearth of MFI studies that use the term "financial literacy" and its sub-variables. Furthermore, there are no studies that have examined how financial literacy impacts MFI performance variables such as sustainability, profitability, efficiency, credit risk management and corporate governance. In addition, there are a few studies that link financial literacy with MFI theories. Generally, the findings indicate that variables related to financial literacy are not adequately covered in MFI studies. The study recommends the formulation of policies that promote financial literacy training for formal and informal MFIs. This is the first comprehensive systematic review to examine financial literacy variables in MFI studies.

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Impact of financial literacy models on the financial behavior of individuals: An empirical study on the Indian context

Cited by 8 publications

References 30 publications

Determinants of Financial Management Skills Among Indonesia’s Gen Z

Determinants of Financial Management Skills Among Indonesia’s Gen Z

A Quasi-Experiment Of Improved Financial Literacy Business On The Young Entrepreneur

Financial Literacy Variables in Microfinance Institutions studies: A Systematic Literature Review

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