Linking Financial Literacy and Behavioural Finance to Saving and Debt Behaviours: A Literature Review of Global and Developing Economy Contexts

This paper aims to analyse the contributions of studies that link financial literacy (FL) and behavioural finance (BF) in relation to saving and debt behaviours, considering both global and developing economy perspectives. This study employs a semi-systematic literature review (S-SLR) to examine 109 articles sourced from Scopus and Web of Science, published between 2011 and 2024. The evidence shows mixed results regarding the influence of FL and behavioural factors on saving and debt behaviours, with saving receiving greater attention. Most research is quantitative and concentrated in developed economies, although some developing Asian economies are also represented. The in-depth analysis of developing economies indicates that, while FL training and intervention-based approaches are relatively well established, studies integrating FL and BF remain scarce, limiting a comprehensive understanding of financing decisions. Future research should therefore prioritise the developing contexts, adopt more diverse methodologies, and incorporate psychological variables. This S-SLR offers an integrated perspective on FL and BF in relation to saving and debt behaviours as components of financing decisions, contrasting with existing literature reviews, which typically treat these fields separately, focus on investment decisions, and provide limited in-depth analysis of developing economy contexts, while also generating insights to support future research on this interconnection.