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Financial Literacy: Literature Review and Research Directions

Author

Listed:
  • Stanley Yap Peng Lok

    (SEGi University)

  • Wei Ying Chong

    (SEGi University)

  • Hon Wei Leow

    (SEGi)

Abstract

In contemporary world, the ability of knowing and understanding financial concepts and matter are important for individual economic well-being. Policymakers have embraced financial literacy as antidote for global financial crisis and increase bankruptcies. This has resulted in a growing interest among academic and industrial researchers, industrialists and policy makers to explore the link between financial literacy and financial behaviour. This paper provides a critical review of literature on financial literacy, with an emphasis on the link between financial literacy and financial behaviour. A systematic review of the relationship of financial literacy and financial behaviour from 2005-2015 has been conducted. The similarities and discrepancies among studies are evaluated and discussed in length. Future research directions are outlined.

Suggested Citation

  • Stanley Yap Peng Lok & Wei Ying Chong & Hon Wei Leow, 2017. "Financial Literacy: Literature Review and Research Directions," Proceedings of Business and Management Conferences 5607972, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:ibmpro:5607972
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    References listed on IDEAS

    as
    1. Hussein A. Hassan Al-Tamimi & Al Anood Bin Kalli, 2009. "Financial literacy and investment decisions of UAE investors," Journal of Risk Finance, Emerald Group Publishing, vol. 10(5), pages 500-516, November.
    2. Annamaria Lusardi & Olivia S. Mitchell & Vilsa Curto, 2009. "Financial Literacy among the Young: Evidence and Implications for Consumer Policy," NBER Working Papers 15352, National Bureau of Economic Research, Inc.
    3. Maximilian D. Schmeiser & Jason S. Seligman, 2013. "Using the Right Yardstick: Assessing Financial Literacy Measures by Way of Financial Well-Being," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(2), pages 243-262, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Literacy; Financial Behavior; Systematic Review; Behavioral Finance;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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