Financial literacy: A comparative study across four countries

This study analysed differences in financial literacy across four countries: Canada, Italy, the UK and the US. The purpose was to understand whether factors associated with financial literacy in one country can be generalized to other countries as well or whether unique national characteristics make it necessary to examine financial literacy in each country individually. A financial literacy index, based on the number of correct answers to four multiple‐choice questions, was used to test the relevance of country of origin to financial literacy. Results suggest significant differences among countries indicating that there are national and cultural differences in what households know and need to know about their personal finances. Policy makers should consider these differences when developing financial literacy assessment tools for their respective countries.     

The effects of financial literacy on the borrowing behaviour of Turkish financial consumers

Our research attempts to measure the effects of financial literacy of Turkish financial consumers on the borrowing behaviour. A questionnaire is administered to a sample of 550 people in the city of Eskisehir. In‐depth interviews are undertaken with 10 financial consumers to support the findings. Findings of the study indicate differences in the borrowing behaviour of consumers with different levels of financial literacy. Considering the relationship between financial literacy and borrowing behaviour, we suggest that attempts to increase financial literacy of financial consumers may have important implications in the prevention of excessive borrowing.     

Financial literacy and savings decisions by adult financial consumers in Zimbabwe

We use survey data from a sample of 4000 adult financial consumers in Zimbabwe to analyse the determinants of financial literacy and its effect on individual's savings decisions. Results show that women have lower financial literacy than men. Furthermore, individuals' residing in rural areas exhibit lower financial literacy compared with urban financial consumers. Financial literacy and financial services interventions targeting women and rural individuals should be strengthened. Econometric results show that financial literacy positively influences savings behaviour for both rural and urban individuals. Furthermore, financial literacy positively influences informal and formal savings. Policy interventions that foster financial literacy are needed to improve individuals saving behaviours.     

Financial literacy: A systematic review and bibliometric analysis

Given the paucity of comprehensive summaries in the extant literature, this systematic review, coupled with bibliometric analysis, endeavours to take a meticulous approach intended at presenting quantitative and qualitative knowledge on the ever‐emerging subject of financial literacy. The study comprises a review of 502 articles ‐ published in peer‐reviewed journals from 2000 to 2019. Citation network, page‐rank analysis, co‐citation analysis, content analysis and publication trends have been employed to identify influential work, delineate the intellectual structure of the field and identify gaps. The most prominent journals, authors, countries, articles and themes have been identified using bibliometric analysis, followed by a comprehensive analysis of the content of 107 papers in the identified clusters. The three major themes enumerated are—levels of financial literacy amongst distinct cohorts, the influence that financial literacy exerts on financial planning and behaviour, and the impact of financial education. Additionally, content analysis of 175 papers has been conducted for the last four years’ articles that were not covered in the co‐citation analysis. Emerging themes identified include financial capability, financial inclusion, gender gap, tax & insurance literacy, and digital financial education. A conceptual framework has been modelled portraying the complete picture, following which potential areas of research have been suggested. This study will help policy‐makers, regulators and academic researchers know the nuts and bolts of financial literacy, and identify the relevant areas that need investigation.     

Financial literacy among university students: A study in eight European countries

This study analysed the level of financial literacy among university students in Estonia, Germany, Italy, Netherlands, Poland, Romania, Russian Federation and Turkey. The purpose of the study was to determine the level of financial literacy among university students, and to find out the relationship between financial knowledge and demographic characteristics of students. Online survey instrument was used to collect data. 409 fully completed questionnaires were accepted for analysis. Logistic regression was used to analyse of impact of the demographic characteristics on financial literacy. Overall mean of correct answers for the survey was 72.2%. This result represents a medium level of financial literacy about personal finance. Results indicate that male students, business major students, PhD students, those who live in a rental house, those whose parents have high level income, those who get advice on financial matters from their friends, those who took financial course before, those who get financial information about financial issues from university education, and students from Poland are more knowledgeable on personal finance. More financial courses should be provided in university education programmes, which could help more students handle their finances better and improve their financial wellbeing. It should be taken into consideration that in recent years, environmental and technological influences on financial literacy may be more important than parental influence.     

基于国际比较的中国居民金融素养特征研究

国际上居民金融素养研究已广泛展开。本文基于国际比较的多层次知识点研究表明:中国居民金融素养处于国际中等水平,对经济金融知识了解程度的自我评价较为客观;得益于社会实践经验,居民对复利和通货膨胀知识了解程度与发达国家基本一致,但对风险分散的认知存在显著偏差,尤其对同类金融产品的风险特征认知不清,具体表现在对实现分散化投资效益的长期投资理念严重缺失。面临金融监管制度性缺位和复杂的金融环境,保护中国金融消费者权益,满足居民不断增长的金融需求,普及金融教育,提升公众金融素养才是最有效途径。     

Financial literacy and the cost of borrowing

This research investigates the relation between financial literacy and the cost of borrowing via credit cards and mortgage loans among US consumers. This is a departure from previous studies that have focused on levels of debt in relation to human capital, either financial knowledge or education. Data from the Consumer Finance Monthly (CFM) survey are used to specifically examine the effect of financial literacy on borrowing rates for credit cards and mortgages controlling for other human capital influences. The CFM is a national survey, rich in American consumer credit information, and includes a comprehensive instrument specifically designed to measure financial literacy. Results indicate that those who are financially literate are about twice as likely to have lower costs of borrowing for both credit cards and mortgage loans.     

Consumer financial education and financial capability

The purpose of this study was to explore potential effects of financial education on the financial capability of American consumers. Data from the 2012 National Financial Capability Study were used to test the hypothesis that financial education is positively associated with financial capability. Four financial literacy and behaviour variables were used to form a financial capability index. Multivariate linear regression results showed that, after controlling for demographic and financial variables, respondents who ever received financial education had higher scores in all financial capability indicators (objective financial literacy, subjective financial literacy, desirable financial behaviour, perceived financial capability and the financial capability index). In addition, high school, college and workplace financial education variables showed positive associations with these financial capability indicators. Additional state comparison analyses provided evidence suggesting high school financial education may have direct impacts and spillover effects on consumer financial capability.     

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.     

Teaching financial literacy: a survey of community‐based educators

A nationwide online survey of financial educators in adult community‐based financial education programmes in the US was conducted to examine teaching beliefs, related curriculum and teaching strategies used to reach underserved populations. A transformative learning theoretical framework was used to discover how financial education engages learners in relation to their own lives. Survey findings indicate in community‐based settings financial educators are largely White, female, college educated and with multiple years of experience; believe their role is to provide expert information to help learners make informed financial choices; and often adapt published materials to reflect the life circumstances of learners. Learners are more racially diverse than educators, most having attended high school, who identify their own financial need to attend the programmes. Programmes do not often target specific groups, are frequently free and can take place in a variety of face‐to‐face settings. Implications indicate best practices for financial educators require inclusive, culturally responsive pedagogies.     

Experience,change and vulnerability: consumer education for older people revisited

Everyday consumer transactions have the same potential for unexpected consequence whatever the age of the consumers involved. Young and old alike can find that products and services fail to live up to performance claims and that they are left with problems not easily resolved, or costs that are difficult to recover. While not overlooking consumer heterogeneity – especially on the basis of age – older consumers are arguably distinguishable in terms of the social and financial context in which they make decisions and attempt to redress problems. In 1988, attention was drawn to the need for consumer education to look beyond generic objectives to the specific situation of older people and their transactions. More than a decade later, in an allegedly consumer‐oriented society, the issue is revisited here to assess the argument's current relevance. Despite the increased availability of information for decisions and consumer protection, difficulties persist in the way information is presented or accessed. Chameleon‐like, old problems become manifest in new unfamiliar ways and invalidate experience. Consumer education today is as important as it was in 1988. Arguably, technological change means that the need for a better understanding of dangers, rights and redress procedures is greater than ever and the needs of older people in increasingly complex private and public sector transaction environments are all the more pressing. However, a fundamental revision of the way we approach the design of products, services and environments is needed to improve prospects for older consumers.     

Effects of institutions on ecological attitudes and behaviour of consumers in a developing Asian country: the case of the Philippines

This study examines the effects of institutions emanating from the social environment on ecologically sustainable consumer behaviour in a developing country context. Drawing on the behavioural perspective model of consumer choice and institutional theory, this study argues that the regulative, normative and cognitive dimensions of the institutional environment play critical roles in shaping the pro‐environmental attitudes called eco‐attitudes of consumers. In turn, eco‐attitudes positively influence the eco‐behaviour of consumers. The structural equation modelling of data from a survey of 1045 consumers from the Philippines shows the significant and positive effects of the regulatory, normative and cognitive dimensions of the institutional environment on the eco‐attitudes of consumers, which in turn have strong positive influence on eco‐behaviour. The findings about the partial mediating role of eco‐attitudes offer a more nuanced explanation on how institutions explain the eco‐behaviour of consumers which is a topic that is less understood especially in a developing country context. The study highlights the theoretical, methodological, policy and future research implications of the findings.     

Consumer decision‐making styles and post purchase behaviour of poor for Fast Moving Consumer Goods

More than half of the world's population is poor. Certainly, their purchasing power cannot be compared with that of the riches, but it is their collective purchase potential which makes them a substantial market. The fast moving consumer goods (FMCGs), on the other hand, are the fourth largest industry in the world. FMCGs are relatively low cost products and the poor, by necessity, spend a significant amount of their income on FMCGs. So, by virtue of being a large consumer base for FMCGs, the poor are a promising market for the FMCG marketers. But little is known about their buying behaviour for FMCGs as only a few studies have been conducted on them in this regard. This study aims to explore their shopping orientations towards price, quality and brand for FMCGs in the context of one of the largest developing countries like India by exploring their consumer decision‐making styles (CDMSs), especially their price consciousness, quality consciousness, brand consciousness and brand loyalty. Besides it, it also explores their post purchase behaviour and testifies its mechanism with the above mentioned CDMSs in the present context through structured equation modelling.     

Consumer education: educational considerations and perspectives

This paper examines questions concerning consumer education in relation to consumption and household management. It is based partly on literature studies and partly on a current pilot study, also on studies carried out in the classroom and developmental work in schools and on teacher training courses. The pilot study on consumer education is being carried out in Denmark and is funded by the Danish Ministry of Business Affairs. Another part of the study concerns a qualitative investigation of pupils’ understandings of consumption and its meaning in their lives, but this is not reported here. The key research questions relate to the way in which the young consumer is educated, both formally and informally, and what the possibilities and perspectives are for consumer education. Introductory research is discussed, followed by a presentation and discussion of key issues for consumer education, such as household management, consumption, home economics and education. Finally, three examples are described and discussed which demonstrate how the advocated principles of consumer education and empowerment can be put into practice. These examples are based on developmental work carried out in lower secondary schools and teacher training courses.     

Learning to fail: resilience and the empty promise of financial literacy education

The requirement to build economic resilience in people has become a concern for the UK Government, regulators, and the financial services industry. Transposed to the realm of financial literacy education (FLE), the resilience doctrine performs particular effects in relation to the naturalisation and individualisation of financial market relations. At the same time, it tends to speak of the inevitability of market failures and crashes. I argue that based on these features, the effect of the resilience doctrine is to mask the “empty promise” of FLE programmes: the irreconcilable gap between the empowerment discourse surrounding what such agendas are meant to achieve for ordinary people and the latter's actual success in securing their security and well-being through financial markets. The paradoxical element of resilience talk is that it at once serves to further legitimise financial education attempts, while providing an opportune reason for failures judged even on its own terms.     

Store environment,emotions and approach behaviour: applying environmental aesthetics to retailing

This exploratory study examines the influence of store environment on emotions and behaviour tendencies. The study brings insights from research on external environments to the study of store environment. We combined the idea of three distinct dimensions of emotions (pleasantness, arousal and dominance) and the role of mediating approach-avoidance behaviours with two variables taken from the field of environmental aesthetics – complexity and order. Twenty-four colour photographs of four sections of two grocery stores were rated by a sample of 43 subjects on their degree of complexity and order. A second sample of 87 subjects rated the same photographs on emotions and approach-avoidance tendencies. The relationship between complexity and order and reported pleasantness and arousal was consistent with findings regarding external environments. The three emotional dimensions mediated an inverted ‘U’ relationship between complexity and approach behaviour tendencies, as expected. Order had a positive correlation with approach behaviour tendencies. The study suggests the importance of examining general variables (such as complexity and order) in the context of retail environments and provides ideas for extensive research.     

Reorienting consumer education using social learning theory: sustainable development via authentic consumer pedagogy

The paper illustrates the growing interest in understanding consumer behaviour through a social learning theory (SLT) lens, and explains the recently launched United Nations Decade for Education for Sustainable Development (ESD). Then, the discussion turns to an overview of a recently developed ESD/SLT integrated theoretical framework, which is then applied to consumer education via an authentic pedagogy. The paper highlights the rich potential of authentic intellectual work in the form of observational learning by augmenting ESD within authentic consumer education curricula.     

Financial Inclusion in Rural Uganda: Testing Interaction Effect of Financial Literacy and Networks

ABSTRACT

Based on the premise that financial literacy take place in networks to influence the level of financial inclusion, the study examined whether networks moderate in the relationship between financial literacy and financial inclusion among poor households in rural Uganda. Studies have revealed that financial literacy affects the level of financial inclusion. However, these studies have failed to incorporate the moderating role of networks in the relationship between financial literacy and financial inclusion. The results showed that networks positively and significantly moderates in the relationship between financial literacy and financial inclusion with both financial literacy and networks having direct and significant effects.     

Differences between Black and White South Africans in product failure attributions,anger and complaint behaviour

The purpose of this research is to extend an understanding of how Black and White South African consumers’ causal attributions for major household appliance performance failures impact on their anger and subsequent complaint behaviour. A survey was administered to Black and White South African consumers who were dissatisfied with the performance of a major household appliance item. Respondents resided in a major metropolitan area. The findings showed that, compared to Whites, the Black South Africans felt a low but significantly higher external locus of causality and lower control, and experienced a higher level of anger regarding product failure. The level of anger determined the decision to take complaint action, but racial group determined the type of action taken. Blacks complained more actively to retailers and engaged more in private complaint action than Whites. These findings may show that Black South Africans are developing a more individualistic orientation as consumers. Therefore, researchers should consider the effect of cultural swapping when researching consumer behaviour in multicultural countries. Implications for retailers in terms of complaint handling are indicated.     

Consumer‐generated media and product labelling: designed in California,assembled in China

Product country‐of‐origin labelling is an important extrinsic cue for consumers about a product's attributes. In a globalized world where products components and parts originate from multiple countries, companies have resorted to inventive country‐of‐origin labelling. The objective then of this paper is to better understand consumers' evaluation of products that have inventive country‐of‐origin labelling (i.e. Designed in California, Assembled in China). Exploratory qualitative data were collected from consumer‐generated media (36 weblogs) using Nielsen's Research BlogPulse tool. A grounded theory analysis revealed that four key themes emerged from the data that related to confusion about the labelling strategy, strong symbolic and emotional ties to country‐of‐origin, and the importance of country‐of‐origin as a quality signal.