Toward Financial Capability—Empowering the Young

Abstract

The importance of enhancing financial capability is widely recognized. However, the learning outcomes from educational programs directed at young people are mixed, indicating that we may not yet have discovered the best practices. Previous studies have established that merely providing information is not the most effective way to help consumers. This study examines empowerment thinking through the dimensions of financial empowerment as a top‐down and bottom‐up approach. The article highlights two routes toward empowerment, context change, and cognition change, and their roles and potential in improving financial capability among the young. This study suggests a novel framework for promoting financial capability that is based on the dimensions of empowerment and offers tools for increasing financial capability. The study employs data from focus groups and interviews to illustrate the possible strengths and problems of empowering young people in the Finnish context.

Extreme exclusion and relative deprivation in subsistence marketplaces: A study in a refugee settlement in Nakivale, Uganda

“…In this regard, researchers have broadly construed financial resources, access to buy and sell (including capturing value in the value chain), and financial and marketplace literacy (covering skills and knowledge, as well as self‐confidence) as key elements for participation in the marketplace (Viswanathan et al ., 2008; Warmath and Zimmerman, 2019). Specifically, extant research (including a study from a Ghanaian context) suggests that knowledge regarding access to financial services should be taught to youth populations (Shim et al ., 2013; Despard and Chowa, 2014; Luukkanen and Uusitalo, 2019). In a sense, all of the elements relate to access such as for credit, to value chains, and to cognitive/affective resources as they relate to the marketplace.…”

Improving financial capability: the mediating role of financial behaviour

“…A recent focus is turning attention towards financial capability measurement. There is scope to expand related studies to compare and establish the rationale behind financial capability advent (Kempson et al, 2013;Luukkanen & Uusitalo, 2019;Santini et al, 2019).…”

“…Financial literacy is about the ability to act but cannot include the opportunity to act Johnson & Sherraden, 2007). In recent years, the significance of promoting financial capability has been on the rise (Loke et al, 2015;Luukkanen & Uusitalo, 2019). Financial literacy includes the ability to act, and financial inclusion means the opportunity to act, and both together develop financial capability (Sherraden, 2013).…”

Young People as Drivers or Inhibitors of the Sustainability Movement: The Case of Anti-Consumption

“…Almost from birth, individuals are targeted as consumers by marketing and policy making (Mau et al 2014;Schor 2004). As a much sought-after market segment highly exposed to the persuasions of marketing and lifestyle appeals, young people may be a vulnerable consumer group due to their usually lower incomes and lack of experience in the consumer market (Luukkanen and Uusitalo 2019). They also develop new attitudes and cognitive and social skills as increasingly independent consumers in the marketplace (Ward 1974).…”