Propensity to plan,financial capability,and financial satisfaction

Propensity to plan is an indicator of financial capability that contributes to consumer financial well‐being. Previous research has shown that propensity to plan is positively related to objective financial well‐being but little research was found to examine its association with subjective financial well‐being. Using financial satisfaction to measure subjective financial well‐being, this study addressed this research gap and had three objectives: (1) to explore factors associated with propensity to plan, (2) to examine the association between propensity to plan and financial capability factors, and (3) to examine the association between propensity to plan and financial satisfaction. Using data from the 2015 US National Financial Capability Study, the results showed socioeconomic differences in propensity to plan. The results suggest consumers with more economic resources had higher scores in propensity to plan. In addition, propensity to plan was positively associated with financial capability factors, suggesting financial planning is a desirable financial behavior. Finally, propensity to plan made unique contributions to financial satisfaction after controlling for socioeconomic and other financial capability factors.     

Targeting Financial Management Training at Low‐Income Audiences

While interest in financial management training programs for low‐income persons has grown in recent years, the specific training needs of low‐income consumers have not been well articulated. This article describes needed training content for such audiences, based on review of previous research and the authors’ experiences in evaluating the Financial Links for Low‐Income People (FLLIP) program. We also illustrate how the choice of financial management training models can seriously impact the subgroups of the low‐income population who attend training, as well as the success of programs in recruiting and graduating participants. The implications of these findings both for financial management curriculum development and for the selection of program models are presented.     

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.     

Predictors of credit card use and perceived financial well‐being in female college students: a Brazil‐United States comparative study

This article examines predictors of the financial well‐being of female college students living in São Paulo or New York, focusing upon the relationship with their credit card use behaviour. The results of structural equation models, based on 784 participants, suggest that financial self‐confidence and social comparison have an impact on the use of credit cards and exercise an influence on financial well‐being. Despite the fact that social comparison is more strongly predictive of credit card use among Brazilian women, credit card use behaviour has a greater impact on the well‐being of American women.     

Exploring the Relationship between Financial Education and Financial Knowledge and Efficacy: Evidence from the Canadian Financial Capability Survey

Researchers and policymakers in many countries are interested in better understanding the relationship between financial education participation and cognitive outcomes such as financial knowledge and self‐efficacy. We used two waves of the nationally representative Canadian Financial Capability Survey along with propensity score matching (PSM) to compare outcomes between persons who had taken a financial education course to those who had not. After matching and adjusting for demographic and economic factors, financial education participants exhibited significantly higher objective and subjective financial knowledge and financial self‐efficacy scores. Post‐estimation analysis showed that higher overall objective financial knowledge scores were at least partially driven by higher scores of men. Financial education participants had higher subjective knowledge and financial self‐efficacy scores for both genders and across age. Future research into financial education ought to consider cognitive dimensions in addition to behavioral and financial outcomes.     

The Effects of Financial Education on Short‐Term and Long‐Term Financial Behaviors

This study investigates how financial education in high school, college, or in the workplace affects the short‐ and long‐term financial behaviors of adults using the 2015 National Financial Capability Study (NFCS) data. Financial education appears to have generally insignificant effects on short‐term behaviors for which there is regular feedback and penalties, and thus greater opportunity for learning by doing. If consumers do not pay off their credit card bill, they get a monthly statement showing interest charges and penalties. Financial education appears to have more positive and stronger effects on long‐term behaviors with less timely feedback, and for which the adverse consequences are not fully realized until later in life, so learning by doing may not work. Not saving enough money for retirement cannot be easily or quickly corrected, if at all. The benefits to financial education may differ based on the time horizon for the financial behaviors.     

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.     

Exploring the Interplay of Cognitive Style and Demographics in Consumers' Financial Knowledge

Despite substantial research and advances in consumers' financial knowledge, many Americans still lack basic financial skills. One overlooked research area is the relationships between consumers' cognitive style and subjective knowledge and objective knowledge, and how these relationships vary by demographics. Based on a nationwide study (n = 817), results indicate that consumers' perception of their subjective financial knowledge varies by cognitive style, with those consumers having an intuitive cognitive style, having a higher perception of their subjective financial knowledge than those who are more analytical. More nuanced results suggest that subjective knowledge is related to the interplay of cognitive style with demographics, whereas objective knowledge is not dependent on this interplay. These and other results illustrate that understanding nuances of financial knowledge is still of pressing importance to ensure consumer well‐being.     

Mindfulness,Money Attitudes,and Credit

Consumer credit is a central feature of modern living, having been an important topic of research for some time. In contrast, mindfulness has only recently gained research prominence. Our study develops a model that links individuals' mindfulness with their credit intentions/use, and that further proposes money attitudes as a mediator variable. Broad support for the model is provided by a sample of students from a Portuguese University and a second sample composed of adult US residents. The results suggest that mindfulness might play a significant role in shaping consumers' money attitudes and credit intentions/use. Additionally, the study suggests that the relationships of mindfulness and money attitudes with credit are only significant when credit is directed toward the purchase of nonbasic products. These results yield a number of considerations for future research and for institutions promoting financial education, which could lead to improved debt management and greater financial well‐being.     

Vulnerability of the unbanked: evidence from a developing country

Financial exclusion is an apparent phenomenon globally, the majority of people without bank accounts living in the developing countries. Those who lack access to financial services could experience vulnerability. Therefore, the purpose of this study was to unfold the vulnerability of the low‐income unbanked consumers in a Pakistani context. Qualitative data were gathered from low‐income unbanked consumers through in‐depth interviews. The findings suggest that unbanked consumers are vulnerable in many ways. The participants faced several negative consequences due to their financial exclusion, which resulted into their personal, economic and social detriment. Based on our study findings, we provide managerial and public policy implications for the well‐being of the low‐income unbanked consumers. Lastly, study limitations and future study guidelines are discussed.     

Impact of Financial Education Mandates on Younger Consumers' Use of Alternative Financial Services

Over one‐quarter of American adults used credit‐based alternative financial services (AFS) in the past five years, which carry a typical APR of 300%. Young adults are especially more likely to use AFS yet are also more likely to be exposed to personal finance education in schools. In this study, I use data from pooled 2012 and 2015 waves of National Financial Capability Study to examine whether state‐mandated financial education impacts young adults' use of AFS. I find that financial education mandates significantly reduced the likelihood and frequency of payday borrowing in particular. Additionally, I show that exposure to required personal finance courses could affect payday borrowing through increased financial literacy and improved financial planning practices. These findings suggest that policymakers and other stakeholders need to understand the full benefits of financial education when making cost–benefit analysis comparisons as to whether or not to implement.     

A New Look at the Longitudinal Relationship Between Motor Carrier Financial Performance and Safety

Motor carrier safety impacts the well‐being of the traveling public and the economic well‐being of the shippers who entrust motor carriers with safely transporting freight. Shippers are affected by motor carrier safety due to accidents damaging their cargo and disrupting their customers’ operations. One characteristic frequently theorized to predict motor carrier safety is motor carriers financial performance. However, the literature offers mixed evidence linking motor carrier financial performance to safety. This does not help practitioners or policy makers and necessitates research to resolve these inconsistent findings, which we undertake in this research. We extend previous work by developing a theoretical framework based on strain theory to explain why both absolute (static) financial performance and year‐to‐year change in financial performance should uniquely affect carrier safety. We test our hypotheses by fitting mixed‐effects models to a repeated‐measure, longitudinal database of publically traded motor carrier financial performance and safety measures. Results indicate that financial performance measures uniquely affect carrier safety. These findings attempt to resolve the inconsistencies in the past literature and, carry important implications for researchers studying motor carrier safety, motor carrier managers, shippers, and policy makers.     

网络经济下财务报告的变革

本文认为,现行财务报告披露的信息不全面,已经无法满足多层次不同信息使用者的要求,其披露的形式和手段无法满足信息的时效性需求,无法满足用户对前瞻性信息的需求,在许多方面已经滞后于整个经济环境的要求。当前网络财务报告主要有事项报告和按需报告两种模式,这两种报告模式各有其优缺点。文章提出,为促进我国网络财务报告的实施,应研究借鉴网络财务报告最佳实践,推广可扩展商业报告语言(XBR L)的应用,制定网络财务报告准则,建立网络财务报告审计准则。     

Financial knowledge among Iranian investors

This research is the first to describe financial knowledge in the Islamic Republic of Iran. Data were collected from a convenience sample of investors in the Tehran Stock Exchange. The data were used to examine objective and subjective knowledge as well as overconfidence in one's financial knowledge. The results indicated that compared with other populations, Iranians did not perform well on either basic or advanced financial knowledge questions, especially when the questions dealt with interest rates. This is likely related to the Islamic law ban on usury‐based investing. Regression analysis indicated that demographic charactristics related to basic financial knowledge were income, labour force status and being a student. Demographic characteristics related to advanced financial knowledge were education, labour force status and age. Higher income and education reduced the odds of being overconfident about one's financial knowledge, while being a student and male increased the odds. The article concludes with recommendations about future research as well as building a national financial education strategy.     

Promoting sustainable financial behaviour: implications for education and research

The current financial crisis has clearly shown that national financial health is strongly tied to the household financial well‐being, and that most consumers were not well equipped with knowledge they needed to cope with this crisis. The failure of markets, institutions, businesses and households during the current financial crisis also revealed the serious economic risks posed by widespread unethical and irresponsible behaviour. The focus of this paper is to explore how, through financial education, we can improve the economic performance of individuals in the economy, both for their own well‐being and for the well‐being of society at large. However, for that to happen, the current approach to financial education will have to include the discussion of attitudes, values and beliefs that enable us to make financial decision that promote long‐term security for families and communities. After establishing the importance of financial education, the challenges and opportunities of the current status of financial education, with emphasis on the complexity of human and financial behaviour, are discussed. It, then, argues for the promotion of responsible behaviour by integrating fundamental values in financial education. Discussion of how selected learning theories can be used to develop effective teaching approaches and the implications for future research conclude the paper.     

How Does Consumers' Financial Vulnerability Relate to Positive and Negative Financial Outcomes? The Mediating Role of Individual Psychological Characteristics

Vulnerable consumers are at particular risk of financial detriment due to, for example, low financial literacy or numeracy, high debt, low income, or impactful changes in personal circumstances. We introduce a comprehensive and formative measure of financial vulnerability that integrates these risk factors and is grounded in definitions of vulnerability from financial regulation bodies and government agencies such as the Consumer Financial Protection Bureau. Across three studies of US individuals, we assess the nomological validity of this measure of financial vulnerability through its relationship with positive and negative financial outcomes (e.g., savings levels, paying credit card balances in full each month, being in arrears) as well as relevant psychological characteristics (e.g., personal savings orientation [PSO], money management skills, financial self‐efficacy). Moreover, we examine whether and how these psychological characteristics mediate the relationship between financial vulnerability and financial outcomes. We conclude with an overview of implications for policy makers and business practitioners.     

Gender differences in financial socialization in the home—An exploratory study

Recent literature has stressed the need for research examining the causes of females in general having lower levels of financial literacy than males. This article uses social cognitive theory of gender development as a framework to propose differing financial socialization of children in the home by gender as a possible cause of gender differences later in life. Evidence is found of gender based differences in the financial socialization of eleven and twelve year olds. Findings include more frequent parent‐child discussions being correlated to more positive financial attitudes, but not to saving behaviour. Saving behaviour of children is influenced by attitudes to money along with the presence of parents when spending, which is subject to a same sex gender bias for girls, with large effect sizes. Girls are over 200% more likely to state they save some of their pocket money if their mother is present when they spend their pocket money, compared to having no parent present. This difference does not exist for male children. When a boy is with both parents when spending, they are 245% more likely to report saving some of their pocket money then when neither parent is present. Having a father present when spending does not yield significantly different results to when no parent is present. These findings of gender biased financial socialization in the home are important considerations for the design of school‐based financial literacy programmes. Specifically, these programmes should consider a goal of encouraging discussion and questioning gender based attitudes and roles in the home. They are also important findings in terms of going some way to explaining the existence of a gender difference in financial knowledge in adulthood.     

浅议施工企业财务杠杆效应

财务杠杆效应对于建筑施工企业发展起到至关重要的作用,旨在研究财务杠杆效应如何在建筑施工行业发挥作用。结合施工企业的特点,采用实证研究的方法,在建筑施工行业的大背景下,创新性研究如何控制施工企业财务风险的同时,充分利用财务杠杆效应。这对于目前建筑施工有效运用资金有着重要意义。     

Female‐Led High‐Growth: Examining the Role of Human and Financial Resource Management

We integrate research on upper echelons theory, the resource‐based view, and gender to explore conditions that facilitate high growth for female‐led firms. We argue that female entrepreneurs have certain advantages that help them leverage their firms’ human and financial capital to achieve high growth. In support, using a sample of U.S.‐based entrepreneurial firms, we found evidence that having a female lead entrepreneur positively moderated the positive relationships between indicators of firms’ human and financial capital and high growth. The findings have implications for programs, policies, and practices to encourage more high growth in firms with female lead entrepreneurs.     

Financial inclusion in China: An overview

Financial inclusion has become an important development strategy in many countries, and related research is increasing. Financial inclusion in China has had significant progress recently. It has gradually formed a unique and sustainable development path with supporting policies and regulations as well as rapid development and application of digital technology. While challenges remain, the experience of Chinese financial inclusion provides valuable lessons and research directions for policymakers and researchers.