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on Financial Literacy and Education |
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Issue of 2024‒10‒21
three papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Steve Agnew (University of Canterbury); Patrick Roger; Tristan Roger |
| Abstract: | This study aims to develop a peer financial modelling scale to ascertain any correlations between the role modelling of peers and the financial literacy of adolescents. The theoretical foundation for this aim lies in Social Learning Theory. The study also examines the reliability of the recently developed short and minimal versions of the Parent Financial Socialisation Scale. Using a survey administered through Qualtrics, data were collected from a sample of 382 fifteen to nineteen-year-olds. Confirmatory factor analysis was used to measure model fit of any proposed scale, with Cronbach’s alpha calculated to test for internal consistency reliability. An ordinary least squares regression was then run to assess any correlation between the scale developed and financial literacy, incorporating control variables for gender and socioeconomic status. A Peer Financial Modelling Scale is developed and found to be negatively correlated with financial literacy levels. Adolescents with lower financial literacy are more likely to view their peers as good financial role models. All three versions of the Parent Financial Socialisation Scale were found to be positively correlated with financial literacy knowledge. |
| Keywords: | Adolescent financial literacy, Peer financial modelling, Social learning theory, Financial socialization, Financial education |
| JEL: | I20 D14 Z13 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:24/14 |
| By: | Simplice A. Asongu (Yaoundé, Cameroon); Amarachi O. Ogbonna (Amritapuri, India); Mariette C. N. Mete (Yaoundé, Cameroon) |
| Abstract: | The present research extends the extant literature by investigating the hypothesis on whether marriage can be a substitute for financial inclusion in energy poverty reduction in Ghana. Pooled data and two stage least squares techniques are used in the estimation process and the validity of the tested hypothesis (i.e., that marriage is a substitute for financial inclusion in energy poverty mitigation) is based on two main criteria: (i) a positive interactive effect relative to the negative unconditional effect of marriage; (ii) a marriage net effect lower in magnitude compared to the unconditional effect of marriage and (iii) an insignificant interactive effect when both unconditional effects are negative. The investigated hypothesis is not valid in the full sample, urban sub-sample and female sub-sample while it is valid in the rural and male sub-samples. Policy implications are discussed. |
| Keywords: | Energy poverty; financial inclusion; consumption poverty; education; household income |
| JEL: | D03 D12 D14 I32 Q41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:24/031 |
| By: | Antoinette Schoar; Yang Sun |
| Abstract: | Using a randomized controlled trial we test how retail investors assess and update their priors based on different types of financial advice, which either aligns with their priors or goes against it. We compare advice that emphasizes either the benefits of passive investment strategies (such as diversification and low fees) or active strategies (such as stock picking and market timing). We find that participants rate advice significantly higher when it aligns with their priors rather than contradicts them. But people update their beliefs about investment strategies in the direction of the advice they receive, independent of their priors. At the same time, there is significant heterogeneity based on the subjects’ financial literacy. Financially more literate subjects positively update in response to seeing passive advice, but most do not update (and rate the advice negatively) when exposed to active advice. In contrast, financially less literate subjects are strongly influenced by both types of advice. Finally, subjects rate the advice lower if the advisor is perceived to have misaligned incentives compared to when they are more aligned. |
| JEL: | G5 G53 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33001 |