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on Financial Literacy and Education |
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Issue of 2020‒03‒16
five papers chosen by |
| By: | Nobuyoshi Yamori (Research Institute for Economics and Business Administration, Kobe University, Japan); Hitoe Ueyama (Faculty of Economics, Nagoya Gakuin University, Japan) |
| Abstract: | Japanese households are reluctant to invest in stocks. In recent times, the Japanese government has established new securities investment schemes such as NISA and iDeCo to aim at the wealth-building of households. According to prior research conducted by van Rooij et al. (2011), how the household conducts securities investments is influenced by the level of financial literacy of the household. The low financial literacy of Japanese households may cause them not to invest in stocks. In order to clarify the situation in Japan, we conducted a questionnaire survey targeting general consumers with the title "Survey on Wealth Building, Securities Investment, and Financial Literacy" in April 2019 and received responses from 1,000 people. We found that people with higher financial literacy are likely to make more stock investments and can obtain higher yields from investment. Furthermore, we found that those with higher financial literacy were also likely to be taking financially desirable actions (such as diversified investment portfolios and implementing life planning). |
| Keywords: | Financial literacy; Securities investment; Survey; Stock participation |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2020-08&r=all |
| By: | Gomes, Francisco J.; Haliassos, Michael; Ramadorai, Tarun |
| Abstract: | There is increasing interest in applying lessons learned from household finance to the design of regulation, both within and across international borders. However, household financial decisions are complex, interdependent, and heterogeneous, and central to the functioning of the financial system. The authors present an overview of the rapidly expanding literature on household finance, beginning with the theory and empirics of asset market participation and asset allocation over the lifecycle. They discuss household choices in insurance markets, trading behavior, decisions on retirement saving, and financial choices by retirees and survey research on liabilities, including mortgage choice, refinancing, and default, and household behavior in unsecured credit markets, including credit cards and payday lending. They also connect the household to factors such as its social environment, cultural and hereditary factors, and financial literacy and suggest directions for future research. |
| Keywords: | household finance |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imfswp:138&r=all |
| By: | Batista, Catia (Universidade Nova de Lisboa); Vicente, Pedro C. (Universidade Nova de Lisboa) |
| Abstract: | Who uses mobile money? What is mobile money used for? This paper describes the mobile money adoption patterns following the experimental introduction of mobile money for the first time in rural areas of Southern Mozambique. We use a combination of administrative and household survey data to characterize early and late adopters, as well as their mobile money usage patterns during the three years after mobile money was introduced. We find that a large proportion of the individuals who were offered mobile money services actively adopted this technology. Adopters of mobile money (and early adopters in particular) are more educated than non-adopters, and they are also more likely to already hold a bank account. Positive self-selection of mobile money adopters raises questions about the effectiveness of mobile money as a tool for financial inclusion. |
| Keywords: | fintech, mobile money, technology adoption, self-selection, financial inclusion, financial deepening, Mozambique, Africa |
| JEL: | O16 O33 G20 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12934&r=all |
| By: | Demirguc-Kunt,Asli; Hu,Bingjie; Klapper,Leora |
| Abstract: | Financial inclusion can help promote development. Inclusive financial systems allow people to invest in their education and health, save for retirement, capitalize on business opportunities, and confront shocks. In the Europe and Central Asia region, there is great variation in financial inclusion. In the euro area, most adults already own an account. Account ownership -- which is the first step of entry into the formal financial system has increased in the developing countries in the region, to 65 percent of the adult population from 45 percent in 2011. Tajikistan, Armenia, Moldova, the Kyrgyz Republic, and Georgia are among the countries that have seen the greatest increases globally, despite starting from a very low base. These experiences underline the potential role of digital payments in driving financial inclusion. Nevertheless, almost 30 percent of unbanked adults report lack of trust in banks as a barrier, which is nearly double the developing country average. And in some countries, gender and income gaps in account ownership remain significant. For example, the gender gap is close to 30 percentage points in Turkey, which is three times the average gap in developing countries. And in Romania, the gap between richest 60 percent of the population and poorest 40 percent is 33 percentage points, which is more than twice the average gap in developing countries. But there are many opportunities to increase account ownership. Over 80 percent of the unbanked have a mobile phone, and simply moving public sector pension payments into accounts would reduce the number of unbanked adults in the region by up to 20 million, including 8 million in the Russian Federation alone. Given the heterogeneity of experiences, there are ample opportunities for countries in the region to learn from each other, which lays out a rich research and operational agenda going forward. |
| Keywords: | Financial Sector Policy,Telecommunications Infrastructure,ICT Economics,Inequality,Educational Sciences |
| Date: | 2019–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:8830&r=all |
| By: | International Monetary Fund |
| Abstract: | In response to a request from the BCRG, the IMF conducted an FSSR mission from June 12–24, 2019. A scoping mission had been undertaken in January 2019, and on the basis of that mission it was agreed with the authorities that the FSSR would cover the following topics: (i) financial stability oversight; (ii) systemic liquidity; (iii) payments systems; (iv) banking supervision; and (v) crisis management, bank resolution, and safety nets. While the current economic situation is benign, the financial soundness indicators (FSIs) point to increasing vulnerabilities (see Annex I). The economic outlook is currently positive. Moreover, financial inclusion is growing rapidly as mobile money services are quickly adopted. However, the FSIs suggest growing vulnerabilities and possibly some idiosyncratic stress in the banking sector. For example, nonperforming loans (NPLs), large exposures, and the net-open position are on a negative trend. Given data quality and availability issues, it is however difficult to draw firm conclusions. For example, while the net-open position according to the reported FSIs is larger than 100 percent, prudential reporting points to a ratio of on average below 20 percent. This discrepancy needs further analysis and explanation. In addition, the BCRG does not prepare an adequate analysis and explanation of the drivers of the observed trends. |
| Date: | 2020–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:20/42&r=all |