A Situated Learning Approach to Measuring Financial Literacy Self-Efficacy of Youth (original) (raw)
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The Economics and Finance Letters, 2019
A comprehensive financial literacy questionnaire surveyed prospective psychological constructs as antecedents (financial literacy, economic perception, financial selfconfidence, financial behavior, and personal financial performance) of applying financial self-efficacy in a large sample of working students in the hospitality and tourism industry. It is expected that financial literacy and economic perception are key antecedents of financial self-efficacy, which in turns may influence financial behaviors and personal financial performance in shaping a working student"s future skills for designing effective financial plans. For this purpose, the structural equations model was empirically tested. Moreover, the mediating indirect effects of financial self-efficacy in the relationships between financial literacy and economic environment on financial behavior and financial performance were tested through a two-phase methodological analysis. This study contributes to the literature by investigating the effects of financial self-efficacy, financial literacy and economic perception on personal financial behavior. The significance of the contribution is to propose and examine empirically a theorybased model of financial self-efficacy and financial behavior-performance in a service context among Generation Yers. Contribution/Originality: The financial efficacy model presented is applicable to different contexts, while the significant power of economic perception and financial knowledge shapes the formation of an adequate financial behavior and performance. This research not only tests the direct relationship of the constructs but also test the mediating power of financial self-efficacy. 1. INTRODUCTION Negligence to administer personal finances may generate dramatic unfavorable outcomes in personal finance among young adults (Generation Y). Financial institutions such as banks and credit unions indicate that the elevated frequency of personal economic failures, credit score issues, weak saving rates, and emotional purchasing behaviors are the main consequences of an absence of financial literacy, financial self-efficacy (FSE), and a realistic economic perception on the buyers" side (Joseph et al., 2017). Fernandes et al. (2014) state that this absence of literacy and comprehension is due to the fact that several bases of the financial world are complicated and distant to
2021
Abstract: The financial behaviour of an investor not only determines the wellbeing of individual, but that of the family, community and the nation as a whole. This makes it crucial to understand the drivers of financial behaviour. The current study is based on salaried class investors in Bengaluru, India. The researcher explored the impact of two antecedents of financial behaviour; financial literacy and financial self-efficacy. In addition, the intervening role of financial self-efficacy, on dependent and independent variables was also examined. A sample of 200 respondents were chosen for the study and data was collected through a structured questionnaire. Pearson's correlation and linear regression were used to test the hypotheses of the study. The results indicated a positive moderate correlation among the variables and suggests that financial literacy is vital in shaping the financial behaviour of an investor and this relationship is strengthened by financial self-efficacy. ...
2016
This research aims to know the influence of financial education toward financial literacy on Economics Faculty students. In Economics Faculty, Universitas Negeri Semarang, there were 16 of 40 students who had good financial behaviors. It was contradictive because they have taken accounting subject who make them good in financial literacy. The research on financial literacy had the contradiction, especially in the influence of financial education variable on financial literacy. Therefore, this study raised the mediating variables; the consumer knowledge variable and psychological factor variables (motivation, self efficacy). This study was analyzed by two analyses that were descriptive analysis and path inferential analysis. Findings show that students' financial literacy and financial education are in enough categories; whereas, motivation and self-efficacy are in good condition, and students' financial knowledge is in unfavorable category. The results of path analysis show ...
Financial Literacy and Financial Education
2019
This research aims to know the influence of financial education toward financial literacy on Economics Faculty students. In Economics Faculty, Universitas Negeri Semarang, there were 16 of 40 students who had good financial behaviors. It was contradictive because they have taken accounting subject who make them good in financial literacy. The research on financial literacy had the contradiction, especially in the influence of financial education variable on financial literacy. Therefore, this study raised the mediating variables; the consumer knowledge variable and psychological factor variables (motivation, self efficacy). This study was analyzed by two analyses that were descriptive analysis and path inferential analysis. Findings show that students' financial literacy and financial education are in enough categories; whereas, motivation and self-efficacy are in good condition, and students' financial knowledge is in unfavorable category. The results of path analysis show that the variable of financial education does not have any direct influence toward financial literacy, but it has indirect influence through motivation. Then, the variable of financial education also does not have any direct influence toward self-efficacy, and self-efficacy does not influence toward financial literacy and financial knowledge does not have any influence toward financial literacy. Thus; the learning process on Finance should involve three aspects; cognitive, affective, and psychomotor; and it needs the development of learning model on Finance to involve students' activeness in managing their financial activities.
Financial Literacy – Conceptual Definition and Proposed Approach for a Measurement Instrument
The Journal of Accounting and Management, 2014
The financial education of a country (in terms of knowledge, abilities and behaviors) can be crucial for a healthy economic life, at individual, macro or multi-nation level. It can contribute to a decrease of financial exclusion risks, to an increase of informed decisions and even to an increased liquidity on the financial markets. The concept designed to encompass different facets of this financial education is labeled "financial literacy". A large number of concepts are used within the umbrella of financial literacy, and quite different measurement instruments exist, more or less sound. This conceptual and operational heterogeneity makes things complicated and does not allow comparisons and concrete actions. In order to improve people's financial literacy we first need to define the concept and then find the best ways to measure one's degree of financial literacy. Through our study we synthesized the definitions and instruments previously used and we suggest a comprehensive approach for obtaining a measurement instrument for this latent variable-financial literacy. We propose using separate scales for measuring the main dimensions of financial literacy-financial knowledge, financial abilities (capability to use financial information in order to take decisions), financial communication, financial behavior and financial confidence. As methodology we used a documentary study and a didactic experiment on Master degree students in finance.
Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy
Journal of Financial Services Marketing, 2022
The purpose of this paper is to explore the impact of financial literacy on financial well-being among the business school faculties. Both the variables (financial literacy and financial well-being) are operationalized as multi-dimensional constructs to undertake the study. Moreover, the paper also endeavored to examine the mediating role of financial self-efficacy between financial literacy and financial well-being. The paper adopts a survey by questionnaire method to gather data from 203 business school faculty members through the simple random sampling (SRS) technique. Confirmatory factor analysis was used for scale validation, and structural equation modeling was used for hypotheses testing. Mediation was tested using percentile bootstrap with a 95% confidence interval. The study found a significantly positive impact of financial literacy as well as its dimensions on financial self-efficacy and financial well-being. It was also found that financial self-efficacy partially mediates the effect of financial literacy on financial well-being. Measurement of the constructs was done on subjective measures, and the study is limited to business school faculties only. The present research findings could be employed in crafting educational programs for business schools. These programs shall guide such institutions in imparting the knowledge and skills among students regarding their personal finances in terms of savings and retirement planning. The study was focused on the business school faculties of the Jammu and Kashmir region, who are less exposed to the financial literacy programs due to factors like frequent lockdown and internet shutdowns. Moreover, it is generally witnessed that salaried class people in Jammu and Kashmir pay less attention to long-term financial planning for retirement, which makes the present study more relevant. Therefore, this study will prove beneficial to all the employees, especially the business school faculties, to understand the importance of financial literacy and its subsequent effect on financial well-being.
International Journal of Economics and Financial Issues, 2017
This article discusses the strategies and concepts in understanding the financial literacy with the approach of self-efficacy theory and goal setting theory of motivation. The discussion begins with the concept of behavioral finance that discusses links between financial concepts to the behavior, and then proceed with the concept and measurement of financial literacy of individuals altogether with some approaches and factors that may affect it. Self-efficacy theory and goal setting theory of motivation is proposed to be a predictive factor of the level of financial literacy with relevant constructs, there are two propositions proposed to predict the level of financial literacy: (1) Self-efficacy theory, in this case the motivational construct (manage finances, use credit cards less, and control debt), and (2) goal setting theory of motivation, in this case the goal commitment and goal specificity construct (financial planning).
The effect of self-confidence on financial literacy
This study analyses whether self-confidence affects financial abilities of young people in Spain, through financial literacy. We use data from the Programme for International Student Assessment (PISA) Financial Literacy (2012) report, conducted by the OECD. Our hypothesis is that non-cognitive factors are important to establish young people’s financial literacy. Financial knowledge, together with other personal attitudes, determines people’s financial behaviour. We focus on the role of self-confidence in four dimensions. First, the student’s self-confidence in the environment of their college; second, self-confidence referring to the utility found at school; third, self-confidence in relation to the results obtained; and finally, self-confidence in a broader sense. Our multi-level estimates show that students with higher levels of self-confidence score higher in financial literacy tests, whatever the dimension considered. Beyond the individual’s inherent characteristics, there are o...
Teen Financial Knowledge, Self-Efficacy, and Behavior: A Gendered View
2007
A social constructionist perspective was taken in the current investigation of 5,329 male and female high school students. Gender differences were investigated in financial knowledge, self-efficacy, and behavior after studying a financial planning curriculum. Females gained more knowledge on credit, auto insurance, and investments, although males had more knowledge entering the course. Females believed that managing money affected their future