Defining and Influencing Financial Capability

Vlaev, Ivo; Elliott, Antony

doi:10.1002/9781118926352.ch12

Cited by 11 publications

(15 citation statements)

References 36 publications

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“…Specifically, although the influence of financial attitude on financial capability was insignificant, substantial evidence from this study was found to support the mediating effect of financial behaviour on this relationship. As Vlaev and Elliott (2017) asserted, a person that does not use or apply financial attitude and financial knowledge in practical decision making is incapable. To avoid this situation, this paper found that financial behaviour can help in this regard.…”

Section: Discussionmentioning

confidence: 99%

“…Financial capability has been introduced to broaden the concept compared to the thin idea of financial literacy (Kempson et al, 2013), comprising both ability and opportunity. If an individual gains skills and knowledge but does not use or apply it in practical decision making, it is termed as incapable (Piotrowska, 2019;Vlaev & Elliott, 2017). Financially capable people must have both the ability and the opportunity to improve their financial well-being by making prudent financial decisions and actions.…”

Section: Introductionmentioning

confidence: 99%

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Improving financial capability: the mediating role of financial behaviour

Çera

Khan

Mlouk

et al. 2020

Economic Research-Ekonomska Istraživanja

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This paper investigates the collective impact of financial literacy and inclusion on individuals' financial capability focusing on the mediating role of financial behaviour. The research is conducted on an individual-level survey. The relationships were examined by using PLS-SEM. Financial capability can be improved by increasing individuals' financial knowledge, financial behaviour and promoting their inclusion in financial services. Furthermore, the indirect effect of financial knowledge and attitude on financial capability is found to be significant, highlighting the importance of financial behaviour. The results assist policymakers and industry leaders in understanding the most influential factors on financial capability in the context of a post-communist transition country. This enables them to design policies and services aimed at equipping citizens with knowledge and skills to make best use of their financial resources.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Improving financial capability: the mediating role of financial behaviour

Çera

Khan

Mlouk

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…The level of income directly impacts individual assessments of household finances, directly impacts behaviors, regardless of the relationship to the objective situation. The objective measurement of households' financial well-being is their consumption and savings, and households with similar subjective assessments of their financial situation can make different decisions in this regard (Vlaev and Elliott, 2018).…”

Section: Economic Welfare and Its Determinantsmentioning

confidence: 99%

Economic Welfare and Subjective Assessments of Financial Situation of European Households

Grzywińska‐Rąpca¹

2021

ERSJ

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Purpose: This work presents a model of the relationship between subjective assessments of the financial situation of domestic households and financial well-being expressed in actual consumption and saving levels. Design/Methodology/Approach: The research was conducted through a detailed analysis of changes in subjective assessments of the financial situation of households in particular periods. Confirmatory factor analysis was used for formal empirical verification. Modeling was preceded by a k-means grouping of European countries and reduced variables by analyzing the main components. Findings: Subjective assessments of household finances are of varying strength but significantly correlated with consumption and saving in different clusters of European countries. The CFA model presented considers the personal effects of countries and explains the volatility of household financial behaviors. Practical implications: One of the new results is that subjective assessments of household finances are of varying strength but significantly correlated with consumption and saving in different concentrations of European countries. The identification of household financial assessment factors was carried out based on a survey covering all European Union countries and the United Kingdom, i.e., 28 countries. Originality/Value: The CFA model presented considers the personal effects of countries and explains the volatility of household financial behavior. Finally, the article contributes to the literature on personal feelings and financial decisions of households.

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“…motivations to discuss in greater depth how motivations are explicitly important in behavior change (31)(32)(33)(34). A summary description of these conditions and their components is in Table 3, and the suggestions we make based on these components are in Table 4.…”

Section: Motivationmentioning

confidence: 99%

Social Care Insurance: A Review of Psychological Influences on Uptake

Vlaev

Uttamlal

Kudrna

2020

Front. Public Health

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There is not currently a developed market for long-term social care insurance in England. Policymakers are interested in what behavioral influences should be considered in the design of insurance products for long-term social care to increase uptake. This review describes the behavioral factors that might be barriers or facilitators of uptake and could be considered in future policy solutions. Behavioral factors include psychological capabilities (knowledge and understanding), which are important given that public knowledge on this topic is poor. Psychological motivations (reflective or automatic biases) may also influence consumers' decision-making. Cultural factors such as language barriers and family norms for caring are considered. Overall, the authors demonstrate processes by which the uptake of long-term social care insurance can be encouraged, pertinent to policymakers.

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Defining and Influencing Financial Capability

Cited by 11 publications

References 36 publications

Improving financial capability: the mediating role of financial behaviour

Improving financial capability: the mediating role of financial behaviour

Economic Welfare and Subjective Assessments of Financial Situation of European Households

Social Care Insurance: A Review of Psychological Influences on Uptake

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