Analyzing the Demographic Differences in Context of Financial Literacy: Evidence from Quetta City
Abstract
Purpose: This paper is aimed to analyze a set of demographic variables in the context of financial literacy. A person possessing the knowledge, skills, and abilities on financial matters can be considered financial literate. It is imperative to have such skills for efficient management of financial resources. Numerous demographic and socio-economic factors jointly determine the extent of financial literacy.
Design/Methodology/Approach: The study is based on the analysis of primary data collected from the residents of Quetta city. Demographic and socio-economic factors are considered independent variables, while financial literacy is dependent. The Analysis of Variance (ANOVA) tests the hypotheses formulated to test demographic differences.
Findings: The salient findings of this research are that Age, personal education, and monthly earnings have a significant difference in the context of financial literacy. However, parents' education and the monthly income of households have an insignificant association with financial literacy.
Implications/Originality/Value: Financial literacy is crucial for financial inclusion, but it has a broad-spectrum impact on enhancing personal financial decisions to society's economic wellbeing of society. This research is significant to the government for forming policies for financial inclusion, financial consumer protection, and financial education. It is also of significance to learning institutions in assessing the discrepancies in the education system and building strong money management skills. And will be of assistance for researchers for a further detailed study on this phenomenon and its impact on other factors
Downloads
Article Analytics Summary
References
References
Agarwalla, S. K., Barua, S. K., Jacob, J., & Varma, J. R. (2015). Financial Literacy among working young in urban India. World Development, 67, 101-109.
Ahmed, F., Kashif, M., & Ali, I. (2016). Financial Literacy Among Students: A Case of Higher Education Institution, Pakistan. RADS Journal of Social Sciences & Business Management, 3(2), 27-40.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy.
Awais, M., Laber, M. F., Rasheed, N., & Khursheed, A. (2016). Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan. International Journal of Economics and Financial Issues, 6(1).
Bashir, T., Arshad, A., Nazir, A., & Afzal, N. (2013). Financial literacy and influence of psychosocial factors. European Scientific Journal, ESJ, 9(28).
Brown, M., & Graf, R. (2013). Financial literacy and retirement planning in Switzerland. Numeracy, 6(2), 6.
Dörnyei, Z. (2007). Research methods in applied linguistics: Quantitative, qualitative, and mixed methodologies: Oxford University Press.
Faulkner, A. E. (2015). A systematic review of financial literacy as a termed concept: More questions than answers. Journal of Business & Finance Librarianship, 20(1-2), 7-26.
Field, A. (2009). Discovering statistics using SPSS: Sage publications.
Friedman, M. (1957). A Theory of the Consumption. Princeton Üniversity Pres.
George, D., & Mallery, P. (2008). SPSS for Windows Step-by-Step: A Simple Guide and Reference 16.0 Update: Allyn & Bacon, Inc.
Ghaffar, S., & Sharif, S. (2016). The level of financial literacy in Pakistan.
Gupta, J., & Madan, D. M. (2016). An Empirical Study on Financial Literacy Level of Salaried Females in Delhi. Pacific Business Review International, 9(4), 19-25.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: Pearson, Upper Saddle River.
Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Fed. Res. Bull., 89, 309.
Hung, A., Parker, A. M., & Yoong, J. (2009). Defining and measuring financial literacy.
Huston, S. J. (2009). Measuring Financial Literacy. SSRN. doi:http://dx.doi.org/10.2139/ssrn.1945216
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296-316.
Isomidinova, G., & Singh, J. S. K. (2017). Determinants of financial literacy: a quantitative study among young students in Tashkent, Uzbekistan. Electronic Journal of Business & Management, 2(1), 61-75.
Jorgensen, B. L. (2007). Financial literacy of college students: Parental and peer influences. Virginia Tech.
Kadoya, Y., & Khan, M. (2016). What determines financial literacy in Japan?
Kefela, G. (2011). Implications of financial literacy in developing countries. African Journal of Business Management, 5(9), 3699.
Kimunduu, G., Erick, O., & Shisia, A. (2016). A Study on the influence of Financial Literacy on Financial Performance of Small and Medium Enterprise in Ruiru Town, Kiambu County, Kenya.
Lachance, M. J., & Choquette‐Bernier, N. (2004). College students' consumer competence: a qualitative exploration. International Journal of Consumer Studies, 28(5), 433-442.
Lusardi, A. (2008). Financial literacy: an essential tool for informed consumer choice? Retrieved from
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of pension economics & finance, 10(4), 497-508.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of economic literature, 52(1), 5-44.
Martin, C. A., & Bush, A. J. (2000). Do role models influence teenagers' purchase intentions and behavior? Journal of consumer marketing, 17(5), 441-453.
Mbarire, T. T., & Ali, A. I. (2014). Determinants of financial literacy levels among employees of Kenya Ports Authority in Kenya. Research Journal of Finance and Accounting, 5(16), 44-52.
Modigliani, F., & Brumberg, R. (1954). Utility analysis and the consumption function: An interpretation of cross-section data. Franco Modigliani, 1, 388-436.
Moschis, G. P., & Churchill Jr, G. A. (1978). Consumer socialization: A theoretical and empirical analysis. Journal of marketing research, 599-609.
Mwathi, A. W., Kubasu, A., & Akuno, N. a. R. (2017). Effects of Financial Literacy on Personal Financial Decisions among Egerton University Employees, Nakuru County, Kenya. International Journal of Economics, Finance and Management Sciences, 5(3), 173.
Naeem, K. (2016). Financial Literacy of Social Sciences Students: A Case Study of International Islamic University-Islamabad. IJAEDU-International E-Journal of Advances in Education, 2(5), 326-331.
Oanea, D.-C., & Dornean, A. (2012). Defining and measuring financial literacy. New evidence from Romanian'students of the master in finance. Annals of the Alexandru Ioan Cuza University-Economics, 59(2), 113-129.
OECD/INFE. (2015). OECD/INFE toolkit for measuring financial literacy and financial inclusion. Retrieved from http://www.oecd.org/daf/fin/financial-education/2015_OECD_INFE_Toolkit_Measuring_Financial_Literacy.pdf
Potrich, A. C. G., Vieira, K. M., & Kirch, G. (2015). Determinants of Financial Literacy: Analysis of the Influence of Socioeconomic and Demographic Variables. Revista Contabilidade & Finanças, 26(69), 362-377.
Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356-376.
Reifner, U., & Herwig, I. (2003). Consumer education and information rights in financial services. Information & Communications Technology Law, 12(2), 125-142.
Robb, C. A., & Sharpe, D. L. (2009). Effect of personal financial knowledge on college students' credit card behavior.
Sarigül, H. (2014). A survey of financial literacy among university students. Muhasebe ve Finansman Dergisi(64).
Schagen, S., & Lines, A. (1996). Financial literacy in adult life: a report to the Natwest Group Charitable Trust: NFER.
Sucuahi, W. T. (2013). Determinants of financial literacy of micro entrepreneurs in Davao City. International Journal of Accounting Research, 1(1), 44-51.
Tóth, M., Lančarič, D., & Savov, R. (2015). Impact of education on the financial literacy: a case of Slovakia.
Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472.
Weisstein, E. W. (2002a). Kurtosis. Retrieved from http://mathworld.wolfram.com/Kurtosis.html
Weisstein, E. W. (2002b). Skewness. Retrieved from http://mathworld.wolfram.com/Skewness.html
Copyright (c) 2022 Maliha Kasi, Noor Muhammad, Bilal Sarwar
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
CSRC Publishing and JAFEE adhere to Creative Commons Attribution-Non Commercial 4.0 International License. The authors, submitting and publishing in the Journal of Accounting and Finance in Emerging Economies published by CSRC Publishing, retain the copyright of their work and give the journal right to publish their work agreeing to the licensing policy under Creative Common Attribution-Non Commercial (NC-BY-NC 4.0) International. Under this license, the published authors let others remix, tweak, and build upon their work non-commercially. Yet all the other authors using the content of CSRC Publishing are required to cite author(s), journal name and publisher in their work. CSRC Publishing and JAFEE follow an Open Access Policy for copyright and licensing.
