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on Financial Literacy and Education |
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Issue of 2020‒01‒06
four papers chosen by |
| By: | Sholevar, Maryam; Harris, Laurence |
| Abstract: | Most of the existing definitions and measurements of financial literacy have been tailored for developed countries. Although financial literacy and financial behaviour are usually assessed at the household level, the gender dimension of household agents is less explored which may overshadow the women’s low level of financial literacy. This is a selective systematic review aiming to survey the existing literature on financial literacy where the focus is on four main issues, namely. the conceptual framework for financial literacy and financial inclusion, the relationship between financial literacy and financial behaviour, the impact of gender on financial behaviour, and financial education. More than a hundred papers were reviewed and around twenty definitions and measures were analysed. On the basis of a thorough literature review, this paper identifies research gaps in each of the four main dimensions. The identified gaps are used to formulate four promising research ideas (PRIs). Specifically, the PRIs seek to: propose a new definition for financial literacy; review previous studies on analysing the relationship between financial literacy and financial behaviour; investigate the gender disparity and propose a novel method for financial training. Through a systematic review, we developed a native definition of financial literacy for developing countries. |
| Date: | 2019–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:b7zd6&r=all |
| By: | Joana Elisa Maldonado; Kristof De Witte; Koen Declercq |
| Abstract: | Based on two randomised controlled trials with a total of 2,779 students from grade 8 and 9 in Flanders, we provide causal evidence on the effects of parental involvement on students’ learning in a financial education course. Using an experimental design with three treatment groups, the impact of parental involvement in homework is distinguished from the standalone impact of the classroom intervention and homework itself. Intention-to-treat analysis reveals that the intervention effectively improves students’ knowledge and behaviour. The classroom intervention used in conjugation with a homework assignment that the students complete with the help of their parents increases financial literacy scores by 0.37 standard deviations. On average, the added value of involving parents in homework is not significant, but involving parents has significant positive effects on behaviour for disadvantaged students. As a potential underlying mechanism it is observed that the parental involvement intervention significantly increases family communication between students and parents about the course topics. |
| Keywords: | Financial Literacy; Parental Involvement; Randomised Controlled Trial; Education |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ete:leerwp:645427&r=all |
| By: | Natalya Presman (bank of Israel); Nitzan Tzur-Ilan (bank of Iseael) |
| Abstract: | Abstract This paper explores the contribution of various factors to determining mortgage interest rates in Israel. We use a unique database combining loan-level data on mortgage loans originated by the Israeli banking system during 2010–13 with proprietary data on assets underlying mortgage origination as well as several additional variables designed to capture risk associated with regional real estate markets and the extent of competition prevailing in the banking system. We show that significant differences exist in real mortgage interest rates among different locations and neighborhood qualities. While homebuyers purchasing assets in the more prosperous central neighborhoods pay the lowest interest rates, those purchasing assets in the peripheral and economically weak neighborhoods pay the highest ones. Observable characteristics of the borrower, the mortgage and the underlying asset risk, and banking competition explain up to two thirds of the regional and socioeconomic differences in mortgage interest rates found in the raw data. Other factors that may explain remaining regional differences in the interest rates include unobservable borrower characteristics such as financial literacy and bargaining ability, unknown characteristics of borrower's employment and statistical discrimination of some groups of borrowers. |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2019.14&r=all |
| By: | Pitriyanti, Pipit |
| Abstract: | Financial services are an important condition for public involvement in the economic system, but the fast growing financial industry is not necessarily accompanied by adequate access to finance. This paper states the importance of the role of inclusive finance in the success of the development of a country and how inclusive finance can be achieved by community participation in social economic activities, both individually by utilizing the local wisdom of arisan (social gathering), and organizationally in the form of CSR. Writing is done using descriptive qualitative methods. It can be concluded that arisan and CSR are Islamic social economic activities, both of which can be utilized as a strategy towards financial inclusion. |
| Keywords: | arisan (social gathering), CSR, Islamic social economy, financial inclusion, social marketing |
| JEL: | O35 O38 Z12 Z13 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97854&r=all |