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on Financial Literacy and Education |
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Issue of 2023‒12‒11
two papers chosen by |
| By: | Thereza Balliester Reis (Department of Economics, SOAS University of London); Vincent Mugo Kamau (Independent Researcher) |
| Abstract: | Studies on financial inclusion place strong emphasis on financial literacy and individual financial responsibility. Over-spending and over-indebtedness are often thought to be consequences of a lack of understanding of prudent budgeting, saving, and investment. Building on the critical accounting and everyday financialisation literature, this study challenges those claims. By interviewing 30 low-income workers in Nairobi, Kenya, we find that many are highly financially literate and have extensive knowledge on how to save on transaction costs and to select optimal borrowing opportunities. In fact, participants report several new techniques to save on costs, such as splitting transactions on M-Pesa to avoid fees. Yet, as their income is low, those individuals often find themselves indebted over sustained periods, particularly for basic needs such as food and transport. Furthermore, where individuals select costly financial services or are unable to save for the future, these seem to be consequences of structural and income constraints rather than a lack of understanding of accounting practices. Taken together, our article critiques established understandings of financial knowledge by presenting new evidence on everyday financial practices in Nairobi. Our results suggest that financialisation of everyday life has spread to countries beyond the Global North and might have severe consequences for development goals. |
| Keywords: | everyday life financialisation; financial literacy; critical accounting; Kenya |
| JEL: | B50 D14 G51 G53 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:260&r=fle |
| By: | Yohanes Ferry Cahaya (Perbanas Institute JL.Perbanas Karet Kuningan - Setiabudi, 12940, Jakarta Sealatan, Indonesia Author-2-Name: Hedwigis Esti Riwayati Author-2-Workplace-Name: Perbanas Institute JL.Perbanas Karet Kuningan - Setiabudi, 12940, Jakarta Sealatan, Indonesia Author-3-Name: Markonah Markonah Author-3-Workplace-Name: Perbanas Institute JL.Perbanas Karet Kuningan - Setiabudi, 12940, Jakarta Sealatan, Indonesia 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 - Using data from Bank Group Based On Core Capital (GBCC) 4 in Jabodetabek, this study aimed to assess and validate the significance of customer trust in moderating the influence of customer engagement and financial literacy on customer loyalty. Methodology – With the use of a causal approach and a total sample size of 253 respondents, the descriptive quantitative technique was employed in this study. The data were then analyzed using the PLS SEM (Partial et al. Model). Findings and Novelty – This study's findings show that while customer interaction has no effect on consumer trust, financial literacy does. consumer trust is a mediator between financial literacy and consumer loyalty. Customer trust does not act as a mediator between customer engagement and customer loyalty. Type of Paper - Empirical" |
| Keywords: | Financial literacy; Customer Engagement, Customer Trust, Customer Loyalty |
| JEL: | D11 D18 I22 |
| Date: | 2023–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr215&r=fle |