The Importance of Financial Literacy: Opening a New Field

Lusardi, Annamaria; Mitchell, Olivia S.

doi:10.1257/jep.37.4.137

Cited by 44 publications

(3 citation statements)

References 5 publications

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“…There have been studies that indicate a connection, between understanding money matters and how people handle their finances. For instance, a study conducted by Lusardi and Mitchell (2020) discovered that individuals who possess a grasp of concepts tend to engage in proactive financial management activities like creating budgets saving money and making investments. Furthermore, these individuals demonstrate proficiency in managing debt and making informed choices when it comes to financial products and services.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Financial Literacy on Financial Behaviour: Based on the Evidence from the Middle-Class of Bangladesh

2023

RJFA

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Financial Literacy, refers to the knowledge about financial terms and the ability to employ that knowledge wisely in making financial decisions. This paper is an effort to study the impact of financial literacy and financial behaviours of the urban middle-class people of Bangladesh. Most of the available research on financial literacy has focused on developed and industrialised economies whereas, this study attempts to highlight the condition of financial literacy and how it impacts financial behaviour in a developing economy. The results of the study imply that the individuals have a moderate degree of financial literacy in terms of risk-return, inflation, interest rate and numerical aptitude. The financial behaviour of individuals in terms of risk aversion, payment obligations and so forth has been found to be associated with the degree of financial literacy and some other factors. The results of the study have demonstrated that a higher degree of financial literacy can help individuals make informed decisions. Such decisions or financial behaviours sometimes radiate prudence and lead to positive behaviour and sometimes not. The findings from this research acknowledge that financial literacy does not necessarily adhere to any universal approach. Diverse populations exhibit varying degrees of financial literacy and necessitate tailored strategies to attain financial well-being. The findings of the research reinstate the fact that the use of financial education can serve as a potent mechanism for fostering financial aptitude, enhancing financial resilience, and mitigating financial distress among individuals.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of Financial Literacy on Financial Behaviour: Based on the Evidence from the Middle-Class of Bangladesh

2023

RJFA

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“…Conversely, negative financial behaviors, like impulsive spending and excessive debt accumulation, can lead to financial stress and instability. Understanding financial behavior is crucial for developing strategies to improve financial health, as it helps identify areas where individuals might need guidance or support [24]. By promoting good financial behaviors through education and targeted interventions, individuals can achieve better financial outcomes and enhance their overall well-being [15].…”

Section: Introductionmentioning

confidence: 99%

Money Mastery: Elevating Your Financial Competence in a Fast-paced World

Oktoriza,

Qodari,

Sari

2024

COSTING

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This research investigates the intricate relationships between financial education, technology utilization, financial behavior, and financial competence among customers of Bank BCA Tembalang. Utilizing a quantitative research design and employing random sampling, data was collected from 70 bank customers. Path analysis using SmartPLS was conducted to examine direct and indirect effects. The results reveal significant direct effects of financial education and technology utilization on financial competence, as well as significant indirect effects through financial behavior. Financial education emerges as a key driver in shaping positive financial behaviors and enhancing financial competence, while the utilization of financial technology also plays a significant role. These findings underscore the importance of targeted educational initiatives and the adoption of digital financial tools in promoting financial literacy and empowering individuals to make informed financial decisions. Ultimately, this research contributes to the advancement of strategies aimed at improving financial well-being and service efficiency within the banking sector.

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“…In the modern era, the integration of technology into personal finance has revolutionized the way individuals manage their savings and enhance their financial competence [1]. With the widespread adoption of financial applications, online banking, and automated savings plans, technology has not only simplified financial transactions but also provided users with valuable insights and strategies to optimize their savings [2]. This research delves into how leveraging technological advancements can lead to improved financial literacy and more informed financial decisions, ultimately fostering greater financial competence among users [3].…”

Section: Introductionmentioning

confidence: 99%

Savings 2.0: Harnessing Technology For Better Financial Competence

Suhendra,

Kanivia,

Imran

2024

COSTING

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This research investigates the dynamics of financial competence among customers at Graha Bank Bengkulu, focusing on the roles of technology utilization and savings behavior, mediated by financial literacy. Utilizing a quantitative research design with a sample of 100 customers selected through random sampling, the study employs Smart PLS (Partial Least Squares Structural Equation Modeling) for data analysis. The results reveal significant direct effects of both technology utilization and savings behavior on financial competence, as well as a highly significant direct effect of financial literacy on financial competence. Additionally, technology utilization demonstrates a significant indirect effect on financial competence through financial literacy, while savings behavior does not exhibit a significant indirect effect. These findings underscore the importance of leveraging technological innovations and promoting financial literacy initiatives to enhance customers' financial competence and resilience. The study provides valuable insights for Graha Bank Bengkulu to develop targeted strategies and interventions aimed at empowering customers to navigate the complexities of personal finance effectively and achieve their financial goals.

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The Importance of Financial Literacy: Opening a New Field

Cited by 44 publications

References 5 publications

Impact of Financial Literacy on Financial Behaviour: Based on the Evidence from the Middle-Class of Bangladesh

Impact of Financial Literacy on Financial Behaviour: Based on the Evidence from the Middle-Class of Bangladesh

Money Mastery: Elevating Your Financial Competence in a Fast-paced World

Savings 2.0: Harnessing Technology For Better Financial Competence

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