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Improving the Financial Literacy and Practices of Youths

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... President Obama is making the startling assertion that increasing the financial literacy of Americans will increase individual wealth. In addition, he affirms the ideological narrative that destructive financial behavior results from some combination of poor individual decision making, lack of critical thinking skills, lazy personal habits and financial illiteracy, a narrative that is pervasive in society (Beverly & Burkhalter, 2005;Billitteri, 2009;Koenig, 2007;Mandell & Klein, 2009;Schuchardt et al., 2007;Varcoe, Martin, Devitto, & Go, 2005). ...
... The Jump$tart Coalition is a Washington DC based public interest group advocating for financial literacy education (Beverly & Burkhalter, 2005;Billitteri, 2009;Koenig, 2007;Mandell & Klein, 2009). On its website, the organization describes itself as follows: ...
... Its thirty-one question financial literacy test is the most widely recognized measure of financial literacy and its curriculum is recognized as the de facto Financial Literacy -Page 21 national standard (Schwab, 2009). The most recent available test results cited from 2008 showed that high-school students on average answered 48.3% of the questions correctly, a decrease of 10% from 1997 (Beverly & Burkhalter, 2005;Billitteri, 2009;Varcoe, et al., 2005). The group presents its 2008 annual test results as clear and convincing evidence that financial literacy of high school and college students decreased during the same period that financial markets were being destroyed by poor personal decision making, suggesting proof of a cause and effect relationship. ...
... For example, Kim and Chatterjee (2013) found children who had their bank accounts and spending habits monitored by their parents during childhood were more likely to own financial assets as young adults. Further, the literature has found that children who display positive attitudes around financial topics were more likely to practice future positive financial behaviors, including money management, saving behaviors, and financial decision-making (Beverly & Burkhalter, 2005). These positive financial behaviors represent a constituent of human capital and have been shown to contribute to wealth accumulation, greater preparedness for debt management, and retirement later in life and can be considered as a form of human capital (Lusardi & Mitchell, 2011Martin & Oliva, 2001;Van Rooij et al., 2012). ...
... Given the robust research literature that highlights the importance of developing financial behaviors and attitudes throughout childhood (Beverly & Burkhalter, 2005;Kim & Chatterjee, 2013;Shim et al., 2010;Van Campenhout, 2015), this study seeks to understand how parenting practices influence the financial socialization process for young children. Research suggests that children as young as 5 or 6 years old are developmentally capable of understanding and learning about financial practices (Drever et al., 2015;Friedline, 2015). ...
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Drawing on Annette Lareau’s conceptual framework of concerted cultivation versus accomplishment of natural growth this qualitative study examines the impact of parental practices on children’s exposure to financial topics and offers insight into how parents socialize their children on financial matters. Lareau’s model suggests that middle- and upper-class families tend to provide more opportunities for their children to socialize with institutions than working class families, thus, better preparing children to navigate, interact, and thrive in complex social systems as adults. Though the study’s findings don’t precisely align with Lareau’s theory, they suggest that mothers’ education level plays a role in financial socialization of children.
... Personal finance education has a positive effect on cultural capital and has therefore become an increasingly important sociological and educational issue (Beverly & Burkhalter, 2005). As with other issues that are essential to developing knowledge, experience, and the social networks necessary to succeed in life, some people believe that personal finance education belongs in the home. ...
... 195). Beverly and Burkhalter (2005) noted that financial literacy "refers to knowledge and skills related to money management" (p. 121). ...
Thesis
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The lack of financial literacy among high school students may adversely affect the financial health of the American economy in the future. The purpose of this quantitative study was to examine the degree of disparity in financial literacy between high school seniors from different ethnic groups and household income levels. Previous researchers examined financial literacy and used Jump$tart data to show anecdotal differences in financial literacy between different ethnic groups. However, the current study sought to determine if the differences in financial literacy across ethnicities and income levels were statistically significant. Ethnicity was chosen as a factor because ethnic minorities experience a disproportionate number of bankruptcies, home foreclosures, and credit card payment delinquencies. To examine the degree of disparity in financial literacy among high school seniors, data from the 2008 Jump$tart Coalition for Personal Financial Literacy survey were utilized. For the purpose of this study, financial literacy was defined as the average test score achieved on the questions contained in the survey. The survey was conducted on 6,856 U.S. high school students from 388 schools across the United States. A two-way ANOVA supported the hypothesis that there are significant differences in financial literacy based on ethnicity, F(3, 1101) = 19.78, p < .001 and income level, F(3, 1101) = 4.988, p < .002. A second two-way ANOVA supported the hypothesis that there was a significant interaction between ethnicity and income, F(9, 1101) = 4.851, p < .001, on financial literacy. The results of the simple main effects test and subsequent Tukey post hoc analyses suggested that as income increased, financial literacy scores increased, except among African American students. The results for that group indicated that as income increased, financial literacy scores decreased. Even with states mandating that financial literacy course be taught, financial literacy has not improved. Further research is needed to determine when financial literacy should be introduced into the K-12 curriculum and if there is a need for standardized teacher education in financial literacy. Further research is also needed to determine why the difference in financial literacy between racial and ethnic groups was statistically significant.
... This skill is mostly acquired in childhood [1]. Consequently, studies conducted by Beverly and Burkhalter [6] and Cohen and Xiao [8] recommend that the financial education needs to be provided as early as possible starting from pre-primary education. It will help prepare young people to make better financial decisions [30]. ...
... Otto et al. [39] have used a game to explore the age differences in children's ability to apply saving strategies. Of the two studies, first was conducted with 42 children and the second was with 36 children (ages [6][7][8][9][10][11][12]. They report that between ages nine and twelve, children gain the ability to manage their money, learn to manage bank accounts and use banking functionalities. ...
Conference Paper
Financial literacy can play an important role in supporting the livelihood of the poor. Sri Lanka, being a country that aims to become a knowledge economy, has started to integrate the use of technology in its primary education. This paper presents a case study from a Co-Design activity with primary school children in rural Sri Lanka to ideate designing of mobile applications to engage primary school students in financial literacy. Three workshops were conducted spanning over two months based on the bonded design method. Techniques involving bags of stuff, storyboarding and stickies were utilised to support idea generation. Two themes; shopping and transporting were prominent among the final designs. From the findings of this paper, we discuss the design inspirations of the study and the impact that scaffolding practices had on the outcomes of the study. Finally, we lay out some initial guidelines to follow when conducting co-design workshops with rural and resource constrained children in Sri Lanka.
... These information and abilities are essential to handle financial encounters and judgments in daily life, such as managing the allowances, maintaining a bank account, investing and saving (Kotlikoff and Bernheim, 2001;Johnson and Sherraden, 2007). Formal financial education is believed to play a vital role in financial literacy Varcoe et al., 2005) and it is important to equip oneself with this knowledge of financial literacy at an early stage of one's life as it affects the financial behaviour (Beverly and Burkhalter, 2005;Martin and Oliva, 2001). ...
... A financially knowledgeable and cultured citizen is highly competent in handling money and is adept to managing his own/family budget, including managing financial assets and obligations pertaining to a shift in life-long attainments. Furthermore, understanding the extent of financial literacy level of the young is particularly imperative when observed from the viewpoint that financial knowledge and expertise developed early in life as it generates an underpinning for impending financial conduct and happiness (Beverly and Burkhalter, 2005;Martin and Oliva, 2001). ...
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This study investigates the impact of financial literacy, socialization agents and parental norms on money management. Data collected via questionnaire from postgraduate students in both private and public institution of higher learning (proxy for young adults) are used in this study. Structural Equation Modeling (SEM) analysis is applied to establish the causal relations between the constructs of the proposed model. The results from this study indicate that financial literacy, financial socialization agents, and parental norms play a significant role on money management of young adults.
... The latter definition brings the behavioral component into the discussion of financial literacy. Beverly and Burkhalter (2005) delineated more details on financial literate behaviors: "Financial literacy refers to knowledge and and skills related to money management. It includes the ability to balance a checkbook, manage a credit card, prepare a budget, take out load, and buy ...
... However, the latter definition positions financial literacy in both cognitive and behavioral domain: Financial literacy is not merely about knowing financial concepts but also "doing" those concepts. Beverly and Burkhalter (2005) delineated more details on financial literate behaviors: "Financial literacy refers to knowledge and and skills related to money management. It includes the ability to balance a checkbook, manage a credit card, prepare a budget, take out load, and buy insurance" (p. ...
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The purpose of this qualitative study was to explore how digital games supported experiential learning in the area of financial literacy, how experiential educational games should be designed, and which online games integrated experiential learning to enhance learning outcomes in the area of financial literacy. There has been an epidemic of financial illiteracy among our youth. The lack of correct financial knowledge and skills account for their dismal management of money and endangers their future financial well-being. Overreliance on credit, living beyond their means, and irresponsible spending are no longer a personal issue, but has become a public issue and crisis. Collaborative efforts by government, organizations, universities, and individuals to improve financial literacy can be seen nationwide. Researchers are also active in finding out the best practice for financial literacy education. To facilitate transfer of learning, they concluded that interactive pedagogy, such as experiential learning, supported by multimedia (e.g., digital games) are more adept at increasing participants’ financial knowledge and improving their financial decision-making than traditional telling pedagogy. In fact, other than interactive and engaging, digital games are experiential in nature, thereby serving as a qualified tool to teach financial literacy. Games, no different from any other pedagogical space, need to be purposefully designed to enhance learning outcomes that are relevant and matter in financial education. Kiili’s (2005) experiential gaming model was introduced to elaborate on the design of experiential games that promote engagement and are conducive to active learning. An organizational structure derived from Kiili’s (2005) experiential gaming model was invented and used as a benchmark for analyzing four online financial literacy games: Moneytopia, Cashflow 101 The Web Game, Farm Blitz, Financial Football 2.0. The results showed that Moneytopia and Casfhflow 101 are highly supportive of situated, double-loop, and experiential learning and exemplifies the ideal design of financial literacy games. Farm Bltizm, failing to allow the player to discover solutions by himself, promotes single-loop learning. As for Financial Football 2.0, the separation between fun activities and educational activities illustrates the undesirable design of educational games. The gamification of standardized testing is what should be prevented in financial literacy games. Kiili’s (2005) experiential gaming model and the derived organizational structure were proved useful for identifying, analyzing, and designing experiential financial literacy games. An organizational structure derived from Kiili’s (2005) experiential gaming model was used to analyze four online financial literacy games: Moneytopia, Cashflow 101 The Web Game, Farm Blitz, Financial Football 2.0.
... Real Money, Real World programs were designed to be a partnership of the county Extension Office, the school, and the business community. Schools were chosen as an ideal delivery site because they provided universal access design (Beverly & Burkhalter, 2005). The strategies used in the curriculum-active learning (Suiter & Meszaros, 2005;Varcoe & Fitch, 2003) and partnerships (Morton 2005;Suiter & Meszaros, 2005)have been recommended as effective strategies for student learning by several researchers. ...
... Proponents of financial education argue that getting an early start on financial education is critical and should begin earlier on in life (Beverly & Burkhalter, 2005;Greenspan, 2005;Suiter & Meszaros, 2005). Greenspan (2001) promotes the need for teachers to focus on providing youth with a strong foundation for understanding personal financial management. ...
... Menurut Munawaroh (2015) mengungkapkan bahwa salah satu tugas perkembangan remaja yaitu memperkuat self control (kemampuan mengendalikan diri) atas dasar skala nilai, prinsip-prinsip atau falsafah hidup. Tidak hanya penting bagi orang dewasa, perilaku finansial juga penting bagi remaja karena pola perilaku yang berkembang pada masa remaja akan menjadi dasar perilaku finansial dan kesejahteraan di kemudian hari (Beverly and Burkhalter, 2005). Mahasiswa yang memiliki self control yang baik, kemungkinan akan dapat mengendalikan diri dari perilaku konsumtif yang berlebihan. ...
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Tujuan artikel: Penelitian ini bertujuan untuk mengetahui pengaruh Financial Literacy dan Self Control terhadap Saving Behaviourpada mahasiswa yang berada di kota Surabaya.Metodologi: Jenis penelitian yang digunakan adalah penelitian asosiatif dengan sumber data primer. Sampel yang digunakan adalah mahasiswa yang berada di Surabaya dengan rentang umur 18-25.Jumlah sampel yang didapatkan adalah sebanyak 100 responden.Metode analisa data menggunakan smartPLS.Teknik pengambilan sampel yang digunakan dalam penelitian ini menggunakan purposive sampling.Hasil: Hasil penelitian ini menunjukkan bahwa financial literacy berpengaruh pada saving behaviour sedangkan self control tidak berpengaruh pada saving behaviour pada mahasiswa kota surabaya.Kata kunci: Financial Literacy, Saving Behaviour, Self Control
... This is due to the fact that a younger generation with low financial literacy skills may have an impact on future welfare and financial decision-making in both the family and workplace environments (Pariyanti and Najmudin, 2021). In accordance with these research, numerous studies support the idea that financial literacy among the younger generation is crucial for boosting skills from a young age (Beverly & Burkhalter, 2005). According to other studies, university education and financial literacy are advantageous for students before they start working in order to build a future society that will be economically productive (Rosid et al., 2020). ...
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Financial literacy has meaning as the basis for carrying out an ideal financial life. In this case, universities are institutions that are competent in conducting education and financial scientific transformation. In addition, students as the main group of these tertiary institutions can implement and achieve high financial literacy. With this educational and practical atmosphere, students can manage financial attitudes, increase financial knowledge, and apply positive financial behavior. This study intends to examine how these three variables affect financial literacy. Universitas Jenderal Soedirman's Management Department active students made up the study's sample. We used the slovin method in selecting the sample and obtained ninety students received questioner. The data collected were then analyzed by applying multiple regression techniques. We discovered that each of the characteristics we studied had a favourable impact on financial literacy. These results may help you develop greater financial literacy.
... belirlenmiştir. Eğitim ve gelir seviyeleri ile finansal okuryazarlık arasında pozitif ilişki olduğunu(Hilgert, Hogarth ve Beverly, 2003;Perry ve Morris, 2005) tespit etmişledir.Finansal okuryazarlık konusunda üniversite öğrencileri üzerine yapılan çalışmalar bulunmaktadır.Martin ve Oliva (2001) ileBeverly ve Burkhalter (2005), gençlerin finansal okuryazarlıklarının ölçülmesi, hayatın erken sayılabilecek dönemlerinde edinilen finansal bilgi ve becerileri, onların gelecekteki finansal davranış ve refahlarını artırma çabalarında bir temel oluşturacağını düşündükleri için çok önem atfedilmesi gereken bir konu olduğunu belirtmektedirler.Rosacker ve diğerleri(2009), üniversite öğrencilerinin toplumun üretken ve başarılı bireyleri olabilmeleri için yeterli düzeyde eğitim ve temel finansal bilgi ve becerileri edinmelerinin kendileri ve toplum açısından faydalı olacağını ifade etmektedirler. Bu sebeple üniversite öğrencilerinin, iş piyasasına girmeden önce olumlu nakit yönetimi tutumlarına sahip olabilmeleri için finansal okuryazarlıklarının geliştirilmesi gerekliliğine vurgu yapmaktadırlar. ...
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Son yıllarda, hükümetlerin ve işverenlerin bireyler namına yatırımları yönetmedeki rolleri azalmaya başlamıştır.Değişen yapı sonucunda bireylerin kendi gelirlerini yönetme ve finansal geleceklerini garantiye alma konusundakisorumlulukları giderek artmaktadır. Artan sorumluluk ile beraber, bireyler daha dikkatli ve seçici olmakdurumunda kalmışlardır. Özellikle genç olan çoğu bireyin bütçeleme, yatırım, kredi ve harcama gibi kişisel finanskonuları hakkında yeterince bilgiye sahip olmaması yanlış finansal kararlar almalarına sebebiyet vermektedir.Bu çalışma, üniversite öğrencilerinin finansal okuryazarlık durumlarının üniversite hayatları boyunca nasıldeğişiklik gösterdiğini tespit edebilmek amacıyla yapılmıştır. Çalışma sonucunda öğrencilerin finansalokuryazarlık seviyelerinde, 1. sınıftan 4. sınıfa kadar bakıldığında düşük ve çok düşük düzeyden, orta ve yüksekdüzeye doğru bir artış olduğu tespit edilmiştir. Genel olarak öğrencilerin, 3. sınıf hariç (yüksek) tüm sınıfdüzeylerinde orta düzeyde finansal okuryazar oldukları belirlenmiştir. Öğrencilerin finansal okuryazarlık alt düzeybaşlıklarında yer alan sorulara vermiş oldukları doğru cevap ortalamalarının, sınıf ilerledikçe neredeyse her sınıftave her alt düzeyde arttığı belirlenmiştir.
... One of the community groups that is a priority group in the target of this activity is the college student (OJK, 2017). Students are also considered as a crucial community group to have stability in financial literacy because financial literacy has an important role to build financial behavior that will lead to prosperity in the future (Beverly and Burkhalter, 2005). Compared to adults, the student level is a period or phase where a person can be in the development stage for the formation of attitudes and behavior as well as enrichment of knowledge and skills related to finance (Shakirah et al., 2020). ...
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Although Indonesia is the largest Muslim country in the world, the level of Islamic financial literacy in Indonesia is still very low. The Islamic financial literacy index in Indonesia is at 8.93%, much lower than the conventional financial literacy index which reached 37.72% in 2019. Therefore, this study aims to analyze the determinants of Islamic financial literacy in Indonesia amongst university students which is a group prioritized by government policies in improving Islamic financial literacy. To achieve this goal, this study develops a multidimensional Islamic financial literacy instrument that includes aspects of knowledge, attitudes and behavior and measures the multidimensional Islamic financial literacy amongst university students. The study collected primary data from 439 students from University of Indonesia and analyzed them using logistic regression method with Islamic financial literacy scores as the dependent variable and socio-demographic factors as the independent variables. The results of this study found that the majority of students (50.1%) had moderate levels of Islamic financial literacy, while 43.5% and 6.4% had high and low levels of Islamic financial literacy respectively. In addition, this study found a positive influence on the field of study, income, and Islamic bank account ownership on the level of Islamic financial literacy. In particular, students who come from the faculty of economics and business, have higher incomes, and have Islamic bank accounts tend to have higher Islamic financial literacy than other students. Based on these findings, relevant stakeholders in Indonesia are expected to continue improving Islamic financial literacy through various strategies and massive educational programs, especially for the groups which have low and moderate Islamic financial literacy. The results of this study are also expected to enrich the literature on Islamic financial literacy in Muslim countries.
... Financial education provided by schools will not only improve the level of financial literacy of the children, but also will be able to reach all children in the school, including those who have little chance to get financial literacy outside of school. In addition, the school environment will also facilitate financial education to be integrated into other topics, such as mathematics (Beverly & Burkhalter, 2005). Financial education at the primary and secondary schools has a positive influence on improving the students' competency in finance (Sherraden et al., 2011). ...
Conference Paper
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Mobile technology is developing and becomes more and more popular in recent years. Soon mobile technologies will be the biggest part of the education so that the curriculums will be designed for this and mobile learning technologies will be more useful to develop different learning environments. In this study, the role of mobile learning, mobile-based education is discussed. This study also tries to indicate some possible views that contribute to M-learning and also the advantages of mobile learning for the teachers in the classroom. The study tries to show prospective teachers perceptions towards mobile learning and its benefits. Firstly study was conducted at Yuzuncu Yıl University involving 468 candidates teachers from different departments and all participants are third graders from the education faculty. Next, some demographic questions and m-learning scales were used and the results showed that the use of mobile devices has both positive effects on learning and teaching. Finally, some problems and limitations about mobile device usage were exposed the use mobile devices were exposed. Prospective teachers’ view towards m-learning devices in all subscales differs significantly according to departments.
... Besides civic education, hygiene knowledge and academic literacy, financial literacy is also important for a student (Bowman 1922). Scholastically, financial literacy means the knowledge and skills of managing money (Beverly & Burkhalter 2005). Through this literacy, a student can be oriented to manage and save money for his/her higher education and for better future. ...
... Theknowledge and skills related to money managementinclude the ability to balance a checkbook, prepare a budget and invest in financial products (Beverly & Burkhalter, 2005). The researcher agrees to adapt the generic definition of financial literacy as: ''the ability to make informed judgments and to make effective decisions regarding the use and management of money'' (Hung, Parker, & Yoong, 2009;Schagen & Lines, 1996) to guide his review. ...
Article
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The needs of financial literacy are becoming increasing important for undergraduate students in the Malaysian context. As a developing nation, rising cost of living and dynamic fluctuations price of goods and services demand people to be financially equipped in financial decision making, especially young adults which include undergraduate students. This paper reviewsfour published studies on financial literacy of undergraduate students in Malaysia. As a result, this paper presents research gaps from the existing literature, proposes research opportunities that not only targeted at scholars but academicians teaching financial literacy in schools and universities.
... According to Peng et al. (2007), undergraduates take on high levels of personal financial responsibility and challenges with respect to budgeting monthly expenses, working, savings, debt management and bill payments. Thus, financial knowledge and financial skills obtained at the university level can act as a basis for workable financial behaviour later in life (Beverly & Burkhalter, 2005). To equip undergraduates in attaining effective moneymanagement behaviour, financial education programmes have been introduced to improve financial knowledge and skills of undergraduates (Heenkkenda, 2014;Peng et al., 2007). ...
Article
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Purpose Undergraduates are expected to be future leaders responsible for business and nations. Given that sound financial decision-making is critical to their success in their careers and lives, it is important to understand the money-management behaviour of undergraduates. In the context of developing countries, the body of knowledge on money-management behaviour is dominated by functional financial literature and there is little research on factors beyond this. This study aims to fill this gap by exploring economic, social and psychological factors that influence money-management behaviour of undergraduates in a developing nation (Sri Lanka) and how undergraduates respond to these influences. Design/methodology/approach The study used a qualitative exploratory approach. Data collection was carried out using focus group discussions and individual interviews amongst undergraduates in a leading Sri Lankan state university. Findings The results indicate that undergraduates adopted both careful and risky money-management approaches. The subthemes, specifically identified under economic, social and psychological factors, revealed how undergraduates responded to each of these factors and the influence of contextual and cultural differences in their money-management behaviour. Research limitations/implications Findings of the study revealed the importance of promoting innovative educational strategies to change the dependability mindset of undergraduates and to promote stress-management strategies that will assist them to enhance their personalities and creativity in making financial decisions. Theoretical and practical implications and future research directions are provided. Originality/value The literature scores in developing context are limited to exploring the existing pattern and the levels of the functional financial literacy. This study has deepened the authors’ understanding of how the developing context affects undergraduates’ response to the factors relating to their money-management behaviour. The findings from this study will be useful to government, financial institutions, educational institutions, parents and those who have a keen interest in encouraging healthy money-management behaviour in undergraduates.
... It will not only improve the level of financial literacy in children, but will also be able to reach all children in the school, including those who have little chance to get financial literacy outside school. In addition, the school environment will also facilitate financial education to be integrated into other subjects, such as mathematics or language (Beverly and Burkhalter 2005). ...
... As parents help their children learn principles of saving and investing, including an applied understanding of the time value of money and compound interest, it is important to help children begin saving at an early age (Drever et al. 2015;Friedline 2015;Kim et al. 2011). Providing children with the opportunity to practice saving and investing within the home lays the foundation for their future financial independence and wellbeing (Beverly and Burkhalter 2005;Grusec and Hastings 2015). ...
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The current study used a multi-generational and qualitative approach to examine perceptions of what parents/grandparents taught their children/grandchildren about finances. Qualitative interviews were conducted with 98 participants consisting of 77 college students, 13 parents and eight grandparents. Team-based qualitative analyses of these interviews revealed three consistent themes: (1) the importance of setting financial goals, (2) planning and acting to meet financial goals, and (3) understanding the time value of money. About 70% of participants mentioned at least one of the three main themes in their interviews. In general, parents and grandparents held regret for not providing financial lessons earlier in life, while students demonstrated gratitude for helpful conversations and good examples from parents. Implications are discussed for practitioners, educators, and parents.
... It has also been found that financial literacy levels significantly contribute to responsible financial decisions [20,7,8]. However, the prior studies proposed that money management behaviour not only determine by financial knowledge, it is deeply intertwined economic, social and psychological factors [21,22]. ...
... It will not only improve the level of financial literacy in children, but will also be able to reach all children in the school, including those who have little chance to get financial literacy outside school. In addition, the school environment will also facilitate financial education to be integrated into other subjects, such as mathematics or language (Beverly and Burkhalter 2005). ...
Article
The level of financial literacy tends to be low in children, while information and financial education for children are very limited, especially in developing countries without mandatory financial education in schools. This study examined the effects of a classroom financial education program on financial knowledge. We used “Financial Intelligence Curriculum” designed for elementary school students from grade 1–6, focusing on the need and want, priority needs, income, spending, saving, and sharing. Using experimental method with pre-post-test and control group design, we found that the treatment group who received financial education has improved financial knowledge relative to the control group. The study provides evidence that elementary school students are appropriate targets for financial education and that it is necessary to develop mechanisms for effective learning to improve financial capability at an early age.
... A educação financeira é fundamental para qualquer indivíduo que busque satisfazer suas necessidades e obter bem-estar (BEVERLY e BURKHALTER, 2005). O ensino de finanças pessoais para jovens estudantes pode ser uma forma de torná-los mais conscientes de seu comportamento econômico na sociedade. ...
Article
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Vários estudos tem mostrado como a educação financeira é importante para o bem-estar dos indivíduos e, por isso, deve ser inserida nas escolas. O objetivo desse trabalho foi registrar a percepção dos alunos sobre a educação financeira nas escolas. Para isso, foi realizado um minicurso com assuntos básicos de gestão de finanças pessoais com alunos do Ensino Fundamental. Em seguida, foi aplicado um questionário para coletar informações sobre a percepção dos alunos em relação ao minicurso. O formato e o tempo do minicurso foram considerados adequados para o conteúdo ensinado. Em relação à temática, ela foi importante para a reflexão do comportamento financeiro e serviu para iniciar o debate de finanças com a família. Por fim, os alunos fizeram diversas sugestões para aprimorar as intervenções de educação financeira na escola. The financial education at school has been considered relevant to the formation of individuals and their welfare. The goal of this paper was to register the student’s perceptions about financial education at school. Thereunto, it was accomplished a short course with basic topics of personal finances with young students of Fundamental Education at three schools in Barra do Garças, Mato Grosso. Then, it was gathered information upon students perceptions related to short course. The format and the course time load were considered adequate to topics taught. In relation to financial education, this topic was important to financial behavior reflection and was useful to initiate the family financial debate. Lastly, the students made several suggestions to improve the interventions of financial education at school.
... In this study, understanding the extent of financial literacy level of the young is given particular priority because the financial knowledge and expertise developed early in life generates an underpinning for impending financial conduct and happiness (Beverly and Burkhalter, 2005; Martin and Oliva, 2001). Linking financial literacy and personal financial behaviour have shown positive correlation in most researches (Hogarth and Hilgert, 2002;Hilgert et al., 2003;Courchane and Zorn, 2005). ...
his study has incorporated an integrated conceptual model which investigates the impact of financial literacy, financial socializations, parental norms and attitude towards money on wealth optimization. Wealth optimization includes budgeting, spending, saving, and investing. The conceptual model is designed post a rigorous review of relevant literature. Empirical testing of the model is proposed and it is envisioned that the results of the study would increase the awareness amongst all stakeholders, i.e., the young adults, parents, and socialization agents on their role in wealth maximization plans. Additionally, the importance of financial literacy and an individual’s attitude towards money on wealth optimization is also highlighted in this study. The idea is novel and it is intended to make significant contribution to the stream of financial planning and wealth optimization research in a developing country.
... This often results in positive financial behavior which does not vary much from the recommended guidelines, which, in turn, contributes to better levels of financial well-being (Hilgert, et al., 2003;Lusardi and Mitchell, 2007). Further-more, Beverly and Burkhalter (2005) and Martin and Oliva (2001) argued that measurement of the financial literacy of young people was especially important when viewed from the perspective that efforts to increase the financial knowledge and skills acquired early in life create a foundation for future financial behavior and well-being. Rosacker et al. (2009) stated that obtaining sufficient education and understanding of the basic financial knowledge and skills will be beneficial for university students to make them productive and successful members of society. ...
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This study investigates the level of financial literacy among undergraduate and graduate students. The study also examines the association between the students' demographic factors and their financial literacy rate. Data were collected by distributing 800 questionnaires to undergraduate and graduate students of Gadjah Mada University, Indonesia, covering cross educational majors, ages, gender, education levels, marital status, income, and work experience. Out of the sample, a total of 348 respondents returned completed questionnaires, which gave a response rate of 43.5 percent. The findings show that on average 45.39 percent of the respondents answered the questions correctly, which is relatively low compared to what other studies found in other countries, such as Chen and Volpe (1998) in the US (52.87 percent), or Beal and Delpachitra (2003) in Australia (53 percent). It also seems that male students, students with economics and business majors, those with higher incomes, and more work experience have a higher financial literacy rate. Using probit and tobit regression tests, the study revealed that education levels and academic disciplines are positively associated with the financial literacy rate.
... Hence, on average, adolescents with low levels of financial literacy stay illiterate through adulthood. On the other hand, financial knowledge and financial skills obtained at a young age act as a catalyst for sensible financial behavior and wealth accumulation later in life (Beverly and Burkhalter 2005;Martin and Oliva 2001). The positive economic effects of financial literacy are considerable (see Lusardi and Mitchell 2013 for an overview): financial literacy results in higher levels of wealth accumulation (Van Rooij, Lusardi, and Alessie 2012), greater preparedness for retirement Mitchell 2009, 2011;Van Rooij, Lusardi, and Alessie 2012), and better debt management (i.e., lower levels of debt and better loan conditions) (Campbell 2006;Huston 2012;Lusardi and Tufano 2009). ...
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This paper reviews the role of parents in young people's financial socialization process. Despite robust evidence illustrating the key role of parents in this process, parental involvement in financial education programs is not well-developed. Hence, this study advocates a revaluation of their role in such programs and shows how this fits in with the development of youth financial literacy programs that are more proactive and aimed at raising adaptable financial consumers. Guidelines are provided for the design of such proactive financial literacy programs, which take into account the role of parents in the financial socialization process. In addition, consequences for the role of teachers are discussed. In conclusion, a number of suggestions for future research are formulated that are necessary in order to develop more effective delivery methods and to increase the effectiveness of financial education programs.
... In addition to understanding how FCPs influence family interaction generally, there is a growing need to learn more about emerging adults' willingness to communicate about their credit card behaviors specifically. Beverly and Burkhalter (2005) argued that children need to develop positive attitudes, beliefs, and values about money in order to become financially secure adults. Despite this, researchers have suggested that parents rarely discuss money and even avoid conversations about finances with their children (Romo & Vangelisti, 2011). ...
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Guided by family communication patterns (FCP) theory, the current study investigated the ways that family interaction contributes to emerging adults’ likelihood to discuss their credit card behaviors with their parents. Data from 188 emerging adults were analyzed. Results indicated that family conversation orientation and the interaction of family conversation and conformity orientation were significantly related to emerging adults’ openness about their credit card behaviors. Further, emerging adults who paid their own credit cards shared less with their parents about their credit card behaviors. Although not statistically significant, moderation analyses suggested that emerging adults who paid their own credit card bills were perhaps less influenced by FCPs regarding openness with their parent(s) about their credit card use than emerging adults whose parents paid their credit card bills. These findings add to the literature on family openness regarding credit card behaviors by examining this phenomenon through a FCP theory lens.
... After graduation from university, young adults who are financially illiterate may be subject to various undesired financial or judicial enforcements. If they are uninformed about the general features of financial instruments, services or markets as well as "personal financial management", they may accumulate large credit card debts, making it difficult to obtain mortgages or car loans, and fall prey to scams related to home equity loans or small business opportunities (Beverly and Burkhalter, 2005). ...
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Poor financial choices could have a number of negative consequences for young people. Financially illiterate graduates might be subject to various financial or judicial enforcements, such as bankruptcy, mortgage crises or financial frauds. In order to protect young adults from the costly consequences of financial illiteracy, the evaluation of financial literacy must be analyzed for transforming them into financially knowledgeable individuals by the help of financial education. The main purpose of this study is to reveal the special characteristics that influence the financial literacy of university students, as well as to evaluate their financial literacy level. Results show that university students do not have adequate knowledge on personal finance and financial management, in other words they need to enhance their financial literacy in order to protect their financial security at the medium and long run. In addition, the most important factors that affect the overall personal financial literacy of university students within the framework of the survey are class rank, age, family's income level, and students' discussion potential with their parents about financial matters.
... More concrete results would stem from studying young children and their parents to form a more valid and reliable description of reasons why some families do not adequately teach their children about finance. Beverly & Burkhalter (2005) found that research establishes that young people's knowledge of finance is lacking and many do not use optimal financial skills. This statement generalizes current research on this topic. ...
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The purpose of this research is to assess the parental perception about their financial habits and their children's. This research was conducted through interviews, which were administered through email, on the phone, or in person, in October 2009. Financial literacy, promoting proper knowledge and habits, is very important in sustaining a healthy economy and in achieving a good personal financial situation. Danes (1994) points out that parents play an essential role in transferring knowledge of the realistic and sensitive aspects of money. Mandell (2009) states that the use or misuse of financial knowledge can affect an entire national economy. Clearly, more financial education is necessary for young adults to better the economy. The family is the source for most of a child's financial knowledge. However, parents seem to pass only their own feelings about money on to their children. If more parents could factually educate their children about finance, children may be less likely to develop poor habits. If enough young adults entered the adult world with sound financial literacy, it could have a macroeconomic effect.
... Financial education refers to the mastery of finance related knowledge and expertise essential to undertake daily transactions and wealth accumulation investments. As for young adults, formal education is said to play a key role in financial literacy (Bernheim, Garrett, & Maki, 2001;Arcoe, Martin, Devitto, & Go, 2005) and it is important to equip oneself with financial literacy at the early stage of their life as it creates a foundation for future financial behavior and well-being (Beverly & Burkhalter, 2005;Martin & Oliva, 2001). Almenberg and Widmark (2011) investigated the impact of financial literacy on financial resolutions and recommended that www.ccsenet.org/ijef ...
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The objective of this paper is to develop an integrated conceptual model, termed as the “cradle to grave model” that forms the link between the roles of educational agents, socialisation agents and the media with financial literacy and its eventual impact on money management. The paper also proposes the moderating effects of money attitude between financial literacy and money management for future empirical research. The researchers deliberated on a rigorous literature to conceptualise the model. It is envisioned that the paper will assist individual citizens and the policy makers in understanding the use of educational institutions, society and media to intellectualize financial literacy in achieving money management. The proposed conceptual model by the researchers should not be generalized until further empirical testing. Auxiliary research is desired to empirically validate the concept through systematic investigations and devising of appropriate tools for quantification. The idea is original and makes the foundational contribution for an inaugural stream of financial literacy and money management research.
... Internationally the benefits of a financially literate population have been widely reported (see, for example, Bond 2000;Braunstein & Welch 2002;Brown et al.2006;Buckland 2010;Cutler & Devlin 1996;Financial Services Authority 1998, 1999Mandell & Klein 2009). The dire consequences associated with personal financial mismanagement have been succinctly described by Beverly and Burkhalter (2005) as follows: ...
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This paper examines whether selected stakeholder groups believe accounting should continue to be taught as an elective subject in its current form at New Zealand secondary schools or whether incorporating a financial literacy component would increase the subject’s relevance to students. A mixed method approach combining qualitative and quantitative research methods was used. An electronically administered survey was used to obtain the responses of secondary school accounting teachers, while additional insight in the form of semistructured interviews was obtained from other stakeholders. Although respondents generally agreed that students benefited from accounting as an elective subject at secondary school, all agreed that the development of financial literacy skills was important. Difficulties in introducing a new core subject into an already overcrowded curriculum were acknowledged. However, this difficulty could be overcome by making modifications to the subject “Accounting”. As the most widespread, existing “finance” related subject, Accounting would be the most appropriate vehicle through which to teach financial literacy.
... Schools are an ideal platform because most children attend school (at least until at least age 16). Moreover, schools have an education mission, they are accessible to children of all ages and income levels, and they employ teachers who are likely to be effective financial educators (Beverly and Burkhalter 2005). In fact, states have already begun to require financial education at the high school level; and there is increasing interest in expanding formal financial education in elementary school (CEE 2009). ...
... While this definition includes financial behaviors, most financial literacy definitions focus on the knowledge gained from financial education. Such knowledge includes knowing how to prepare and follow a budget, balance a checkbook, invest, manage credit, and save for the future (GAO 2004;Beverly 2005). Indeed, others have determined that financial literacy includes understanding a wide range of economic matters such as how the economy works and how to be a part of the economy through work (Engelbrecht 2008). ...
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The purpose of this paper is to outline key constructs including financial literacy, economic self-efficacy, economic self-sufficiency, and economic empowerment, and then present findings from an exploratory study that sought to understand the relationship among these variables in a sample of abused women. The results revealed positive and significant relationships between financial literacy with economic empowerment, economic self-efficacy and economic-self sufficiency. Results also indicated that financial literacy, race, and economic self-sufficiency were significant predictors of economic empowerment. By focusing this research on abused women, it is our intention to raise awareness about the importance of financial literacy curricula with advocates, policy-makers and researchers, so more focus can be given to economically empowering IPV survivors.
... Financial literacy refers to the skills and knowledge necessary to make wise financial decisions. For example, the financially literate are able to balance a checkbook, understand and use interest rates to their advantage (e.g. with a credit card), and purchase appropriate insurance (Beverly & Burkhalter, 2005). Financial literacy includes both basic numerical skills and knowledge about the workings of the financial world, and in this sense it is not a strict measure of numeracy. ...
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Numeracy is defined as the ability to understand and use numbers. In addition to basic reading and writing skills, today’s consumers need an understanding of numbers and basic mathematical skills to use any numerical information presented in text, tables or charts. This is especially true in many financial and healthcare settings, where a basic understanding of numerical concepts is arguably as important for informed decision making as reading ability. Although systematic research on numeracy has been growing steadily over the last several years, there have been few comprehensive reviews of this literature. In addition to summarizing key findings, a review could serve to identify gaps in our knowledge and suggest paths for future research in the field. The primary goal of this paper is to review current directions in numeracy research, and, in particular, to examine the relationship between numeracy and decision making in health and selected non-health domains.
... Various international studies (Berti & Bombi 1981;Beverley & Burkhalter 2005;Danes 1994;Tennyson & Nguyen 2001;Varcoe, Martin, Devitto, & Go 2005) have supported the notion that children should be exposed to specific financial education sooner rather than later. Bernheim, Garrett and Maki (1997) evaluated the effect that the US High School Financial Curriculum had on education and saving, and concluded that the savings rates and wealth accumulation of the learners exposed to the financial curriculum were higher than those of the learners who did not participate in financial education. ...
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South Africans, like many people worldwide, need to save more and spend less. The question arises why people do not save enough for their retirement and other financial needs. In this exploratory study, age, gender and the amount of pocket money that learners receive were evaluated to determine their impact on the level of learners’ financial literacy. The author concluded that of the three variables evaluated, only age has a significant effect on the level of learners’ financial literacy.
... Schools are an ideal platform because most children attend school (at least until at least age 16). Moreover, schools have an education mission, they are accessible to children of all ages and income levels, and they employ teachers who are likely to be effective financial educators (Beverly and Burkhalter 2005). In fact, states have already begun to require financial education at the high school level; and there is increasing interest in expanding formal financial education in elementary school (CEE 2009). ...
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A groundswell of interest in young people’s ability to understand and handle financial decisions has generated keen interest in financial knowledge and effectiveness of financial education. This study examines an innovative four-year school-based financial education and savings program, called “I Can Save” (ICS). Using a quasi-experimental design, the study examines quantitative and qualitative data to analyze program effects on financial knowledge. Elementary school children who participated in ICS scored significantly higher on a financial literacy test taken in fourth grade than comparison group students in the same school, regardless of parent education and income. Results suggest that young children increase financial capability when they have access to financial education and it is accompanied by participation in meaningful financial services. KeywordsFinancial capability–Financial education–Financial services–Young children–Saving–College savings
... Los mismos estudios muestran que factores como la escolarización, la ciudad de residencia, el género y el nivel socioeconómico inciden significativamente en la manera en que adolescentes y adultos comprenden los fenómenos económicos (Medina, Méndez y Pérez 1999;Palavecinos, 2002). En los escasos estudios vinculados con la medición de la alfabetización económica en jóvenes universitarios, se ha constatado que los niveles de conocimiento financiero en este segmento son especialmente bajos en estudiantes de carreras como Psicología y Derecho, en las cuales no están considerados estos contenidos como parte de los planes de estudios (Amar, Abello, Denegri y Llanos, 2006;Beverly y Burkhalter, 2005), lo que redunda en un círculo vicioso que no favorece el efectivo desenvolvimiento de los estudiantes universitarios en la actualidad, ni en su futuro cercano como profesionales y ciudadanos responsables. ...
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The purpose of this research was to determinate the level of economic literacy of psychology students of Universidad de La Frontera, Chile. The Economic Literacy Test for Adults (TAE-A) was applied in 172 students, from which 111 were women. Results indicate that psychology students hold a middle level of economic literacy with significant differences on the academic level and no differences for gender. Interpretation of results takes into account impacts of obligatory formation in Economic Psychology at specific academic levels and the need to develop skills in this area for personal formation and the future professional practice.
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El gobierno mexicano ha implementado desde 2008 el programa: “B002-Generación y Difusión de Información para el Consumidor”. El objetivo del presente es evaluar la incidencia sobre las decisiones de consumo y deuda de las personas que han participado en el programa en Morelia, Michoacán, México. La hipótesis que se propone es que la capacitación influye positivamente sobre las decisiones endeudamiento y control de deuda. Para comprobar esta, se aplicó análisis de prueba de medias para dos grupos (control y experimental) con tres variables (capacitación financiera, consumo -responsable e inteligente- y endeudamiento). Los resultados muestran que entre los dos grupos hay diferencias significativas en el consumo y en uno de tres componentes del endeudamiento. Se concluye que el programa ha influido positivamente en las decisiones de endeudamiento crítico o de riesgo patrimonial del grupo que recibió capacitación.
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The concept of financial literacy is of vital importance both for the individual and the economy as a whole. The chapter analyses the different components of financial literacy from the Indian perspective. It is an attempt to throw light and carry out a comparative analysis between the financial acumen of working and non-working Indian women. The results of the study may serve as important inputs to the policy makers to develop strategies to enhance financial literacy among Indian women in particular and thereby help in nation building.
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The younger generation has not yet realised the importance of financial literacy and most of them are materialistic. An integration of technology into teaching financial literacy can promote students’ learning interest. The aim of this study is to develop a financial literacy cybergogy model to promote human values, practices and accountability among secondary school students. This study employed survey design and consisted of two stages: 1. develop the questionnaire; 2. develop and examine the construct of the model. The confirmatory factor analysis measurement model 1 with four latent variables, accountability, decision making, human value and practices was constructed with 24 items. The FLC measurement model 1 did not meet threshold, a revision was needed. The revised FLC measurement model 2 presented Chi-square/df=2.186, GFI=.936, AGFI=.903, CFI=.900, RMSEA =.060, and all the values fitted within the acceptable value. This indicated an acceptable model fit. After producing a good fit FLC measurement model, a second order CFA was conducted. All the values met the required threshold. Students’ with good financial planning will experience well-being until their retirement. A comparative study with other countries will become the future direction of this research.
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