Assessment of antecedents of financial literacy among young adults: hybrid BWM and ISM approach

Abstract

PurposeThe low level of financial literacy among young adults is a pressing concern at both individual and country levels. Therefore, there is a dire need to understand the best-worst antecedents of financial literacy and how they influence each other.Design/methodology/approachA two-phased multicriteria decision-making (MCDM) technique consisting of best-worst method and interpretive structural modeling (BWM-ISM) was employed for pair-wise comparison, assigning weights, ranking and establishing the relationship among antecedents of financial literacy.FindingsResults suggest that use of Internet (SF1), role of financial advisors (SF3) and education level of individuals (DS7) are top ranked antecedents, whereas masculinity/feminity, language and power distance in society are the least ranked antecedents of financial literacy. Findings will help both academicians and practitioners focus on the key factors and make efforts to increase financial literacy by minimizing resource usage.Originality/valueThe current study provides clarity among antecedents of financial literacy by following BWM-ISM approach for the first time in the financial literacy context.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0746

Unlocking Financial Literacy in Generation Z: Are Sociodemographic Factors the Key?

“…The other finding is that access to the Internet does not affect financial literacy. However, previous research conducted by Saharan et al (2023) shows that access to the Internet is the top antecedent of financial literacy. This discrepancy may happen because people may not utilize the internet effectively to learn finance.…”

“…In the context of the convergence theory, the internet is an environmental factor that can significantly influence an individual's level of financial literacy. Saharan et al (2023) evaluated the antecedents of financial literacy among young adults using the best-worst method and discovered that internet access was the top-ranked antecedent of financial literacy. Against this background, we propose the following hypothesis: H3: The greater an individual's access to the internet, the higher their financial literacy tends to be.…”

“…In contrast, Okamoto and Komamura (2021) proved that males have higher financial literacy than women, while Pratama and Selvia (2021) observed the opposite result. Saharan et al (2023) assessed the antecedent of financial literacy and found that internet access is the top-ranked antecedent. Meanwhile, to our knowledge, several previous studies have not examined the relationship between access to the Internet and financial literacy.…”