Visualizing financial success: planning is key

Recent economic troubles in the US and abroad highlight the importance of family financial capability, including an understanding of financial markets. Financial capability is the foundation for desired financial behaviours, such as saving, budgeting, using credit wisely and planning. Study participants, a subsample of respondents to a Turkish university financial literacy survey (n = 374), who reported uninterrupted income for a 3‐year period were grouped as ‘planners’ and ‘non‐planners’. These groupings allowed examination of the relationships between planning, financial management decisions, and differential outcomes in daily household financial well‐being. The practice of preferred financial management behaviours was predictive of debt. This research makes a unique contribution to the literature, demonstrating the importance of uninterrupted income over income amount in support of the planning process. Findings of this study have implications for professionals in the family and consumer sciences field and other practitioners assisting consumers with improving financial management outcomes.     

农村普惠性金融发展对中国农户收入的影响——来自1877个县(市)面板数据的实证分析

本文使用来自中国2006—2009年1877个县(市)的面板数据,实证分析了中国农村普惠性金融发展及其各个维度对农户收入的影响。研究结果表明:中国农村普惠性金融发展对农户收入具有显著的正效应,组成农村普惠性金融的地理渗透性和产品接触性与农户收入正相关,使用效用性和农户收入负相关;从区域层面看,东部地区农村普惠性金融发展和农户收入正相关,而中、西部地区农村普惠性金融发展和农户收入负相关。针对以上的结论,本文就农村普惠性金融发展促进农户收入增长提出了简要的政策建议。     

Determinants of household expected real income growth in the U.S.A.

This study explores factors related to household income growth in a two-period timeframe. using data from the 1983 and I986 Survey of Consumer Finances. Regression results explain 81% of the variation in household income. Household income in the first period, age, marital status, education, job status and occupation were found to be important determinants of various levels of household real income growth. Implications for consumer education, financial planning, family economics and welfare policy are discussed.     

Who buys newspapers in Spain? An analysis of the determinants of the probability to buy newspapers and of the amount spent

In this paper, we examine the determinants of household consumption of newspapers and the amount spent on their purchase by considering several explanatory variables related to household characteristics and the main household wage earner. Results show that the variables have quite similar effects on both the relative probability of buying newspapers and the amount spent. The key variables are the age and occupational status of the main wage earner, the number of household members, income and having to pay for the house, as well as a number of geographical variables. However, certain differences are also observed. The most important is the education of the main wage earner: while its effect on buying newspapers is very small (only those who did not complete primary education are less likely to buy), its effect on the amount spent increases with the level of education. As other studies of cultural goods and services consumption have suggested, education and occupational status are more relevant determinants than income.     

How Much Does Wealth Matter in the Acquisition of Financial Literacy?

The acknowledged widespread lack of financial literacy casts serious doubts on the ability of individuals to make financial decisions. Some studies suggest that financial experience can affect financial knowledge and that household financial wealth can be a factor leading to the acquisition of financial literacy. This article investigated the determinants of financial literacy using the 2006 wave of the Italian survey on household income and wealth. Empirical results indicated that wealth has a positive but small effect on the degree of financial knowledge.     

江苏省农村金融发展与农民收入结构分析

基于江苏1988-2010年的数据,本文实证分析了江苏省农村金融发展与农民收入结构的关系:从长期来看,江苏农村金融发展规模、效率对农民家庭各项收入的增加都起到了正作用,农村金融发展效率对农民家庭经营性收入的贡献比较突出,而农村金融发展结构对农民家庭各项收入的增加起着较大的负作用;农民工资性收入、转移性及财产性收入的增长在短期内有利于农村金融发展结构的改善,但长期却相反。     

房产和金融资产对家庭消费的影响:中国的微观证据

利用最新的中国健康与养老追踪调查(CHARLS)数据,研究资产对家庭消费的影响。在区分耐用品消费和非耐用品消费的基础上,分析房产和金融资产及扣除债务后的净资产在消费中的作用。实证结果显示:在房产拥有者中,房产的消费弹性在0.07～0.09之间,即房产增加100元,消费将增加7～9元;而金融资产的消费弹性比房产的消费弹性要小得多,当金融资产增加100元时,消费只增加2元左右;老年家庭房产的消费弹性低于年轻家庭;城市家庭的房产消费弹性高于农村家庭;借贷能力对资产的消费弹性没有影响。     

New Dimensions of Financial Liberalization in Japan

This article contrasts the development of Japanese financial institutions over the past 50 years to that of the United States and compares the two countries’ household savings behavior. Although reform and liberalization is driving the Japanese financial sector to become more open and more sophisticated, there are powerful reasons for the Japanese system and Japanese asset-holding behavior to remain divergent from that of the United States. One major factor is that income and wealth in Japan are distributed much more evenly than in the United States. Since wealthy households are more sophisticated and better able to accommodate risk, the concentration of wealth in the United States means that, compared to Japan, there are more high income/high wealth households that are willing to take on risk from equity and bond holdings. In Japan, in contrast, there is a much heavier reliance on bank deposits. Even though financial institutions in the two countries are becoming more similar, the persistent differences in income distribution are likely to lead to persistent differences in asset holding and the composition of capital markets in the two countries. JEL Classification G2, O53     

The links between job insecurity,financial well‐being and financial stress: A moderated mediation model

This study proposed a nuanced approach to the association between job insecurity and financial stress by examining whether financial well‐being mediates the established association. In addition, we examined whether the association between the job insecurity and financial stress, through financial well‐being, is moderated by income. For this study, we conducted a path analysis using 1,145 survey respondents. Results revealed a significant relationship between the job insecurity and financial stress and a partial mediation effect of financial well‐being. Moreover, the indirect effect of job insecurity on financial stress through financial well‐being was moderated by income. Although people who have higher financial well‐being were more likely to have lower financial stress, this relationship varied by income such that it was stronger for higher income groups than for lower income groups. Our findings provide insights into the way job insecurity and financial well‐being influence financial stress. This study will help the researchers and practitioners develop more effective and adaptive intervention programmes and resources for individuals and families. Implications for practice and directions for future research are discussed.     

If You Build It,Will They Come? A Simulation of Financial Product Holdings Among Low-to-Moderate Income Households

The 1995 Survey of Consumer Finances was used to determine holdings of selected financial products by low-to-moderate income households, defined as households with incomes less than or equal to 80% of median household income for their region. First, we estimated determinants of holding bank accounts. Next, we estimated determinants of holding other selected products, contingent on holding a transaction account. Finally, we estimated the potential demand for these other products by households without accounts, should they become account holders. We found that if non-account holding households were to obtain accounts, they would increase their demand for credit cards, first mortgages, car loans, consumer loans, certificates of deposit, and IRA/Keogh accounts. The implications for financial institutions, policy makers, and consumer educators are presented.     

Effects of financial education on sound personal finance in Korea: Conceptualization of mediation effects of financial literacy across income classes

This study analyzed the role of financial literacy as a mediator between financial education and sound personal finance to assess how financial education affects the soundness of personal finance. In particular, this study conducted three sets of mediation analyses using data from the 2014 Consumer Empowerment Index survey of the Korea Consumer Agency to verify whether the mediating relationship is valid across different income classes of the Korean population. The results suggest that financial literacy works as a mediator between financial education and sound personal finance in the high‐income class and the middle‐income classes. Therefore, policymakers should consider the limitations of financial education and financial literacy when addressing low‐income consumers.     

风险态度、金融教育与家庭金融资产选择

文章基于中国城市居民消费金融调查数据,研究了风险态度、金融教育对家庭金融资产选择和家庭金融市场参与的影响。结果发现,风险态度显著影响家庭金融资产组合分散化程度,风险厌恶程度越高,金融资产组合分散化程度越低。风险态度对家庭正规金融市场参与有显著影响,风险厌恶程度的提高会显著降低家庭在股票、基金、债券、储蓄性保险市场的参与概率,风险厌恶程度增加一单位,家庭参与股票市场的可能性会降低10.5%。风险厌恶程度对股票、基金、债券、储蓄性保险资产在家庭金融资产中的比例具有显著的负向影响。家庭的金融教育投入对风险资产持有比重条件分布的影响上,呈先上升后下降趋势,中间分位的要大于两端。文章相应的政策含义是,政府及金融管理部门需要普及金融教育知识,提高居民的金融风险认知水平,从而优化家庭金融资产选择,改善居民金融福利。     

The impact of financial planning designations on financial planner income

This paper examines the impact of three of the main financial planning designations on financial planner income. This study uses a sample of over 1800 financial planners including those with the Certified Financial Planner (CFP®), Chartered Financial Consultant (ChFC), Personal Financial Specialist (PFS), and no designation. The study results indicate that the CFP® designation is associated with a significant increase in income when compared with planners with no designation or holding the other designations cited. The researchers find no significant impact on earnings of the ChFC designation or the PFS designation. It is also found that the impact of the CFP® designation is greater for those planners relying on performance-based earnings rather than salary-based earnings.     

Financial intermingling in small family businesses

This study examines financial intermingling in small family businesses. We define a family business as one in which at least two family members work and the business is owned and managed by one of the family members. This study compares the determinants of intermingling in family and non-family businesses. The empirical results show that family businesses are not significantly different from non-family businesses in terms of intermingling once other business and household characteristics are controlled for. For both family and non-family businesses, differences in financial intermingling are primarily characterized by differences in business characteristics and household net worth. We conclude that intermingling of household and business financial resources are probably more influenced by business characteristics and household net worth than by other household characteristics or whether a business is a family business.     

Fueling the Credit Crisis: Who Uses Consumer Credit and What Drives Debt Burden?

Excessive household debt contributed to the worst recession in decades. Insights about borrowing and spending behavior can inform economic recovery forecasts, policy decisions, and financial education. This study identifies life cycle and credit attitude as key determinants of who uses debt. Younger households are more likely to borrow for consumption, as are those who believe that it is all right to borrow to purchase luxury goods or cover living expenses. Furthermore, households that condone borrowing for these purposes have a higher consumer debt burden. Debt capacity (or creditworthiness) and financial discipline are also significant factors in determining household debt use.     

Household expenditure on poultry and seafood in the U.S.A. - a cross-sectional analysis

This study investigates the determinants of household expenditures on poultry and seafood using the 1992 Consumer Expenditure Survey. Higher income and larger households with a better-educated and older household head spend more on poultry, especially during the fourth quarter of the year, than others. Higher income and north-eastern households with a non-white and better-educated household head spend more on seafood than others. Poultry expenditures are more sensitive to changes in household size than to changes in household income. In contrast, seafood expenditures are more sensitive to changes in household income than to changes in household size.     

从决策有用性角度看财务业绩报告改革

收益是财务会计的核心概念。然而随着资本市场的迅猛发展，金融衍生工具的广泛应用，各界纷纷指责传统收益表不能提供真实、全面的财务业绩信息，要求改革财务业绩报告的呼声越来越高。本文从满足决策有用性目标的角度出发，分析财务业绩报告的发展过程。     

Do types of foreign capital matter for income equality?

We investigate the link between financial integration and income inequality, suggesting that different channels of financial integration have contrasting distributional effects. Using an unbalanced panel of 65 countries from 1992 to 2015 and employing dynamic panel data methods, we find that greater financial integration through debt-creating capital increases income inequality compared to equity-type capital. Furthermore, a larger share of direct investment in financial integration is associated with lower income inequality; the converse is true for loans and credit, while the share of portfolio investment has no significant effect when considered as a whole. Evidence also shows that increased financial integration and trade is beneficial for reducing the income inequality of emerging economies.     

The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality

ABSTRACT

This study examines the role of information sharing in modulating the effect of financial access on income inequality in 48 African countries for the period 2004–2014. Information sharing is proxied with private credit bureaus and public credit registries. All dynamics of financial development are taken into account, namely: depth (money supply and liquid liabilities), efficiency (at banking and financial system levels), activity (from banking and financial system perspective) and size. The empirical exercise is based on interactive Generalised Method of Moments. It can be established from the findings that: first, a threshold of 18.072 percentage coverage of public credit registries is needed to counteract the unconditional positive effect of banking system efficiency. Secondly, on the role of private credit bureaus in financial depth, both the unconditional and the conditional effects are negative, implying a negative synergy. Overall, the findings show that, contingent on the type of financial development dynamic, credit registries broadly play their theoretical role of decreasing financing constraints in order to ultimately reduce inequality.