|
on Financial Literacy and Education |
|
Issue of 2022‒10‒24
eleven papers chosen by |
| By: | Steven Cassimon; Alessandro Maravalle; Alberto González Pandiella; Lou Turroques |
| Abstract: | Individuals’ access to finance is particularly low in Mexico. Widening access to finance would boost growth and inclusion. This paper uses microdata from the National Survey for Financial Inclusion to assess the drivers of and the barriers to people’s financial inclusion in Mexico. Results show that working in the formal sector, the level of wealth and income, educational attainment, and age are the socio-economic characteristics that most affect the likelihood of holding any formal financial product. The relative importance of these characteristics, however, varies across financial products. Economic barriers to individuals’ financial inclusion are strongly associated with widespread informality and a low level of education and income. These results suggest that financial education programmes and credit registries considering a wider set of data to assess informal workers' credit worthiness would be promising avenues to help more Mexicans access financial services. |
| Keywords: | banks, credit registry, financial education, financial inclusion, informality |
| JEL: | D18 G2 G41 G51 G52 G53 O32 |
| Date: | 2022–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1728-en&r= |
| By: | Mengistu Bessir Achew; Alemayehu A. Ambel; Helen L. Gradstein; Asmelash Haile Tsegay; Imtiaz Ul Haq; Minita M. Varghese; Manex Bule Yonis |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy Finance and Financial Sector Development - Financial Structures Gender - Gender and Economics Poverty Reduction - Inequality |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:36030&r= |
| By: | Mário Antão (Universidade Lusiada de Lisboa, Portugal Author-2-Name: Cristina Nunes Author-2-Workplace-Name: Universidade Lusiada de Lisboa, Portugal Author-3-Name: Cláudia Silvestre Author-3-Workplace-Name: Instituto Politécnico de Lisboa, Lisboa, Portugal Author-4-Name: João Caldeira Author-4-Workplace-Name: Instituto Politécnico de Lisboa, Lisboa, Portugal Author-5-Name: Carla Martinho Author-5-Workplace-Name: ICPOL, ISCPSI, Portugal Author-6-Name: Mário Negas Author-6-Workplace-Name: LE@D, Universidade Aberta, Portugal Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | "Objective - This paper addresses the financial literacy issue in different countries and contexts, comparing it with the financial Literacy of Portuguese Higher Education Institutions (HEI) students. The objective is to identify the growing need for knowledge in this area and to correct the population's attitude and behavior. This study identifies the main conditioning variables of the financial Literacy of this group of individuals, contributing to developing conditions and procedures that would improve the financial Literacy of European students as an essential element of their personal and professional success. Methodology - This study was based on a survey using a sample of 1017 students from 18 institutions. Ordinal regression was used to determine the predictors of financial Literacy. Findings - The literature review shows different results of structural aspects of the same central questions related to financial Literacy among HEI students. The conclusions of the study are in line with the literature review. Nevertheless, empirical research shows that Portuguese students' financial Literacy is lower than students from other countries, highlighting the need to improve their knowledge in this area by correcting the focus group's attitude and behavior. The study identifies the main conditioning variables of the financial Literacy of this group of individuals. Novelty - HEI students who study finance present a higher level of financial knowledge and relatively more confidence in managing their money, the same for working students. No significant gender differences are observed, and these facts align with some authors. However, it is noteworthy to mention that several researchers observe alternative conclusions. This study shows an evolution of the situation followed twelve years earlier, with the same population, but confirms HEI students' low financial literacy level. This research also contributes to the main study promoted by OECD and included on the 2030 agenda of the United Nations (U.N.). Type of Paper - Empirical" |
| Keywords: | Financial Literacy; financial knowledge; financial attitude; financial behavior; higher education students. |
| JEL: | I22 J16 |
| Date: | 2022–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber227&r= |
| By: | World Bank |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy Finance and Financial Sector Development - Financial Regulation & Supervision Public Sector Development - Regulatory Regimes |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:36213&r= |
| By: | Jake Hess; Leora Klapper; Kathleen Beegle |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - E-Finance and E-Security Finance and Financial Sector Development - Microfinance Information and Communication Technologies - Digital Divide Information and Communication Technologies - Telecommunications Infrastructure Finance and Financial Sector Development - Financial Intermediation |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35870&r= |
| By: | Tii N. Nchofoung (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon) |
| Abstract: | At the 2010 G20 Summit, the use of formal financial services was recognized as one of the main pillars of the global development agenda. At the same time, the fifth goal of the Sustainable development agenda outlined the importance of gender inclusion for sustainable development. Empirical research on the effect of gender inclusion on inclusive finance has however been limited to micro level studies. This study aims to verify the effect of gender political inclusion on financial inclusion on a sample of 37 African countries from 2004-2020. The empirical methodology involves the Ordinary Least Squares (OLS), the Tobit regression and the System Generalized Method of Moments (GMM) methodologies. The results from these methods show that gender political inclusion is enhancing on financial inclusion in Africa, and this finding is robust across alternative specifications of gender inclusion and inclusive finance. Besides, governance exhibits a positive synergy effect with gender political inclusion on inclusive finance. Policy implications are discussed. |
| Keywords: | Gender; political inclusion; inclusive finance; Africa |
| JEL: | G20 I32 O55 P16 P43 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/063&r= |
| By: | Tan Kee Xian (Faculty of Business, INTI International University, Malaysia Author-2-Name: Racheal Poh Author-2-Workplace-Name: " Inti International University, Malaysia" Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | "Objective - The penetration rate of financial planning is still considered low according to a few studies done by our regulatory bodies in Malaysian and a few scholars and researchers. Therefore, the novelty of this research is ingrained in a study to explore the factors influencing working adults' awareness of individual financial planning. The possible factors included financial literacy, education level, and income level. Secondly, a critical discussion on the literature review that was done by the previous researchers regarding both the dependent variable and independent variables will be performed. Methodology/Technique - On the other hand, a quantitative study approach is employed in this study. Hence, the targeted population is working adults, with data collected through a convenient sampling approach with a minimum sample size of 120 respondents. Additionally, the questionnaire was distributed through a digital survey. Finding - Moreover, the analysis methods adopted in this study included validity tests, reliability tests, descriptive statistics, and inferential statistics. According to the findings, there is a significant relationship between financial literacy and awareness of personal financial planning among working adults in Penang. In other words, financial literacy represents a significant predictor for the dependent variable. Novelty - However, the other two independent variables are insignificant predictors of the awareness of personal financial planning among working adults in Penang. Type of Paper - Empirical" |
| Keywords: | Financial Planning, Awareness, Financial Literacy, Education Level, Income Level. |
| JEL: | J32 J39 |
| Date: | 2022–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr621&r= |
| By: | Jeremie Banet; Lucie Lebeau |
| Abstract: | An overlapping-generations model with income heterogeneity is developed to analyze the impact of introducing a Central Bank Digital Currency (CBDC) on financial inclusion, and its potential adverse effect on bank funding. We highlight the role of two design parameters: the fixed cost of CBDC usage and the interest rate it pays, and derive principles for maximum inclusion and for mitigating the inclusion-intermediation trade-off. Agents’ choice of money instrument is endogenously driven by income heterogeneity. Pre-CBDC, wealthier agents adopt deposits, while poorer agents adopt cash and remain unbanked. CBDCs with low fixed costs (and low interest rates) are adopted by cash holders and directly increase inclusion. CBDCs with high fixed costs (and high interest rates) are adopted by deposit holders and increase inclusion by raising deposit rates. The former allows for more favorable inclusion-intermediation trade-offs. We calibrate the model to match the U.S. income distribution and aggregate share of unbanked households. A CBDC 50% cheaper (30% more expensive) than bank deposits decreases financial exclusion by 93% (71%) without impacting intermediation. In comparison, making the deposit market perfectly competitive would only decrease exclusion by 45%. |
| Keywords: | central bank digital currency; financial inclusion; payments; monetary policy |
| JEL: | E42 E51 E58 G21 |
| Date: | 2022–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:94847&r= |
| By: | World Bank |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy Finance and Financial Sector Development - Financial Regulation & Supervision Public Sector Development - Regulatory Regimes |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:36212&r= |
| By: | Javier Olivera (Luxembourg Institute of Socio-Economics Inequality (LISER)); Yadiraah Iparraguirre (Pontificia Universidad Catolica del Peru (PUCP)) |
| Abstract: | This paper studies the gender pension savings gap in a system based on individual retirement accounts (IRA). We exploit randomly selected samples of individual administrative pension fund records in Peru, collected between 2005 and 2019. The results show a gender gap in favor of men at each percentile of the distribution of pension funds. The unconditional gender gap decreases along the percentiles until it reaches a form of “glass ceiling†, and then increases substantially. Older cohorts show larger gender gaps in pension savings because of the capitalization process. Importantly, we find that awareness about pension fund risk management—used as a proxy for financial literacy—increases the dispersion of pension savings over the distribution, therefore increasing inequality and the gender gap. This situation is aggravated by the fact that Peru has very low levels of financial literacy. Our results could be useful to other countries with IRA systems, or countries that are considering increasing the relative importance of these systems in their pension models. These systems are conceived to improve the incentive alignment between individual contributions, labor supply and retirement savings, but one danger is that of exacerbating gender pension gaps. |
| Keywords: | Gender gap, Pension savings, Financial literacy, Unconditional quantile, Peru |
| JEL: | D31 G23 J16 J32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2022-624&r= |
| By: | Philippe d'Astous; Irina Gemmo; Pierre-Carl Michaud |
| Abstract: | In this paper, we conduct an experiment with a large sample of financial planner professionals in Canada to elicit factors which may influence client recommendations. Using repeated client vignettes, we find that recommendations are often in-line with what one would expect from economic theory. In particular, advice is sensitive in expected ways to relative costs and benefits of particular options. In some domains, we find evidence that planners are more likely to recommend products they own themselves, their spouse owns, or they are licensed to sell. In the investment domain, we also find that planners are more likely to recommend products that clients inquire about even when this type of solicitation is randomized across clients and options. Finally, we find that planners are systematically sensitive to the gender of the client even when gender is uninformative regarding which recommendation to make. |
| JEL: | G51 G52 G53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:rsi:irersi:9&r= |