Learning by doing: the role of financial experience in financial literacy

Frijns, Bart; Gilbert, Aaron; Tourani‐Rad, Alireza

doi:10.1017/s0143814x13000275

Cited by 60 publications

(64 citation statements)

References 40 publications

(80 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Yaniv (2004) argues that receiving advice (of any type) improves the accuracy of decision-making, because it enables people to overcome their self-confirmation tendencies and biases. Frijns et al (2013) find that there is a positive and causal effect of financial experience on financial knowledge. This means that financial knowledge can be obtained not only through education, but also through experience.…”

Section: Introductionmentioning

confidence: 81%

Financial advice and asset allocation of individual investors

Zhang

2014

Pacific Accounting Review

View full text Add to dashboard Cite

Purpose – The purpose of this paper is to explore the differences in KiwiSaver portfolio composition between investors who receive financial advice and those who do not. Design/methodology/approach – Using proprietary data which contain information of 405,107 individual KiwiSaver accounts, this paper examines who receives advice, compares the asset allocations of advised accounts with non-advised accounts, explores the relation of asset allocation with demographic characteristics and compares differences in returns between advised and non-advised investors. Findings – Three key findings are presented in this paper. First, female investors, relatively older investors and investors with higher levels of funds under management (invested wealth) are more likely to receive financial advice. Second, advised investors hold more equity assets. Third, differences in performance between advised and non-advised accounts are marginal. Research limitations/implications – Panel data are not used, which prohibit investigating asset allocation choices overtime. The time series for returns is short, as KiwiSaver has only been operating since 2007. The total portfolio that people own is not known; thus, the values on investment fund information do not represent the total wealth of each person, as other accounts elsewhere may exist. Practical implications – There are broad implications for the New Zealand capital market, retirement policy, financial advice industry and development of financial literacy programmes. Originality/value – The paper examines individual investor behaviour on a nationwide sample and explores how receiving financial advice relates to asset allocation.

show abstract

Section: Introductionmentioning

confidence: 81%

Financial advice and asset allocation of individual investors

Zhang

2014

Pacific Accounting Review

View full text Add to dashboard Cite

show abstract

“…Many financial literacy programs and initiatives worldwide have been designed assuming this fundamental hypothesis. However, researchers have had a difficult time "proving" that financial literacy works (Frijns, Gilbert, and Tourani-Rad, 2014).…”

Section: Discussionmentioning

confidence: 99%

Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in the People's Republic of China

2019

View full text Add to dashboard Cite

Government leaders around the world are designing national strategies to improve financial inclusion for populations traditionally excluded from the financial markets. Financial literacy is a key tool being used to bring economically vulnerable populations into the financial mainstream. Data from the 2013 China Household Finance Survey (CHFS) were used to investigate the impacts of various dimensions of financial literacy on the usage of bank and non-bank loans among rural, illiterate, and migrant populations in the People's Republic of China. The findings show that the most vulnerable groups may be less likely to benefit from financial literacy, especially when it comes to usage of formal bank loans. Other factors such as those related to social networks and infrastructure may matter more than financial literacy. Results were found to vary across measures of financial literacy and financial inclusion. The findings suggest that barriers to access likely need to be overcome so that financial literacy can be more effective. The current study provides important insights for policy makers and international organizations designing national strategies to improve financial inclusion via financial literacy, especially for populations that have been traditionally excluded. Researchers are encouraged to reexamine previous definitions and measures of financial literacy and inclusion to develop a better understanding of the relationship between the two dimensions.

show abstract

“…Dari segi kebahasaan, pengalaman diartikan sebagai yang pernah dialami (dijalani, dirasai, ditanggung, dan sebagainya). Menurut Frijns (2014), pengalaman dapat diperoleh dengan cara learning by doing. Dalam teori sosial kognitif Bandura (1989, hlm.…”

Section: Pengalaman Keuanganunclassified

Peningkatan Pengalaman Keuangan Remaja Untuk Literasi Keuangan Syariah Yang Lebih Baik

Triani

Mulyadi

2019

ifinance

View full text Add to dashboard Cite

Indeks literasi keuangan syariah yang rendah dilaporkan Otoritas Jasa Keuangan (OJK), yaitu sebesar 8,1%. Artinya, 8 dari 100 penduduk Indonesia dapat dikatakan melek keuangan syariah. Sangat minim bila dibandingkan dengan 222 juta atau lebih dari 87% penduduk Muslim di Indonesia. Urgensi literasi keuangan syariah muncul manakala potensi yang besar nampak dari peningkatan aset, variasi produk, serta regulasi yang semakin komprehensif. Sederet program diluncurkan untuk memenuhi tuntutan peningkatan literasi keuangan syariah, tak terkecuali program pendidikan dikalangan muda. Namun, banyak studi menunjukkan program pendidikan yang dijalankan kerap berujung pada kegagalan. Identifikasi mengarah kepada kurangnya penelusuran pada akar pengalaman keuangan. Studi dimaksudkan untuk mengkolaborasikan gagasan yang dapat berperan untuk meningkatkan literasi keuangan syariah dikalangan remaja. Pengalaman dengan uang dan pengajaran orangtua menjadi modalitas yang diharapkan mampu untuk meningkatkannya. Metode kualitatif dipilih dalam rangka membangun pemahaman awal dan mengkonstruksikannya kembali. Hasil akhir dari penulisan berupa kontribusi pemikiran terhadap perspektif pengalaman keuangan remaja yang diharapkan mampu meningkatkan literasi keuangan syariah. Hal ini turut menyadarkan remaja bertindak rasional dalam menyikapi uang sesuai ajaran Islam. Kebenaran ajaran Islam mestinya tidak hanya bermakna kesuksesan akhirat melainkan mampu menjadi pedoman bagi kesuksesan dunia.

show abstract

Learning by doing: the role of financial experience in financial literacy

Cited by 60 publications

References 40 publications

Financial advice and asset allocation of individual investors

Financial advice and asset allocation of individual investors

Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in the People's Republic of China

Peningkatan Pengalaman Keuangan Remaja Untuk Literasi Keuangan Syariah Yang Lebih Baik

Contact Info

Product

Resources

About