Financial literacy and financial education in Western Europe

Arrondel, Luc; Haupt, Marlene; Mancebón, María Jesús; Nicolini, Gianni; Wälti, Manuel; Wiersma, Jasmira

doi:10.4324/9781003025221-29

Cited by 3 publications

(4 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Secondly, it provides preliminary results of the relationship between financial literacy and fraud by considering various constructs of financial literacy, whereas previous studies have mainly relied on objective financial knowledgeboth contributions explain why the same financial literacy construct might have different effects at each stage of financial fraud and, furthermore, why different financial literacy constructs might have different effects at the same stage of financial fraudaccordingly, this paper helps to identify the specific financial literacy construct that needs to be addressed to reduce the risk of financial fraud. Thirdly, this paper expands upon the existing empirical evidence by presenting novel findings for Spain, a southern European country of particular interest for analysis due to its relatively low levels of financial literacy (Arrondel et al, 2021) and a non-negligible percentage of cases of attempted financial fraudindeed, Spain ranked worldwide among the top three countries [1] attacked by mobile-banking trojans in 2021 and 2022 (Shishkova, 2023). Following this introduction, the layout of this paper includes a review of the literature in Section 2.…”

Section: Introductionmentioning

confidence: 93%

The role of financial literacy in consumer financial fraud exposure (via email) and victimisation: evidence from Spain

Rey-Ares,

Fernández-López,

Álvarez-Espiño

2024

IJBM

View full text Add to dashboard Cite

PurposeThe ongoing evolution of the Internet and the subsequent digitalisation of financial services, along with the ever-increasing innovation of financial products, have rendered consumers more vulnerable to a wider range of fraud in the banking sector and, particularly, to consumer financial fraud (CFF). This paper aims to analyse the factors that may contribute to CFF exposure and victimisation among Spaniards, with a special focus on financial literacy.Design/methodology/approachThis paper provides a comprehensive overview of leading publications on the topic, followed by empirical analyses using regression models with a sample of 6,207 Spanish individuals drawn from the Survey of Financial Competences.FindingsObjective and subjective financial knowledge are positively correlated with CFF exposure via email but do not protect against CFF victimisation. Similarly, financial knowledge overconfidence is positively related to the former but fails to constitute a driver of the latter. Financial inclusion, measured by the number of financial products held, not only increases the risk of this exposure but also contributes to its subsequent victimisation.Originality/valueTo the best of the authors' knowledge, no previous paper has analysed the relationship between CFF and financial literacy by differentiating two types of vulnerabilities to fraud (exposure and victimisation) while considering different constructs of financial literacy. Dissecting these two domains may explain why the same financial literacy construct can have different effects at both stages of financial fraud and, furthermore, how different financial literacy constructs may affect the same stage of financial fraud.

show abstract

Section: Introductionmentioning

confidence: 93%

The role of financial literacy in consumer financial fraud exposure (via email) and victimisation: evidence from Spain

Rey-Ares,

Fernández-López,

Álvarez-Espiño

2024

IJBM

View full text Add to dashboard Cite

show abstract

“…To date, only Friedline and West (2016) have explored the relationship between financial capability and FV; however, their FV measure was limited to a single item assessing the ability to handle unforeseen expenses. The third contribution centers around studying a South-European country characterized by relatively low financial literacy levels (Arrondel et al, 2021) and moderately high levels of FV (Arellano & Ca´mara, 2021), making it an interesting case for the analysis.…”

Section: Contributions and Limitationsmentioning

confidence: 99%

“…In so doing, it offers insights into the different relationships between financial literacy constructs and FV. Thirdly, it expands the empirical evidence by presenting new findings from Spain, a South-European country of interest for the analysis due to its relatively low financial literacy levels (Arrondel et al, 2021) and moderately high levels of FV (Arellano & Ca´mara, 2021).…”

Section: Introductionmentioning

confidence: 96%

A Comprehensive Approach to Measuring Financial Vulnerability and Literacy: Unveiling Connections

Fernández-López,

Álvarez-Espiño,

Rey-Ares

2023

Sage Open

View full text Add to dashboard Cite

In the aftermath of the 2007–08 financial crisis, the worsening financial conditions of households increased concerns about their financial vulnerability (FV). In this context, policymakers embraced the notion of financial knowledge to foster sound financial behaviors among individuals and households, aiming to mitigate the detrimental effects of FV on households’ financial wellbeing and the overall economy. However, the relationship between FV and financial literacy remains inconclusive. This lack of definitive findings may stem from limitations in measuring FV and narrow focus on specific dimensions of financial literacy. This paper analyzes the relationship between financial literacy and FV by creating a comprehensive measure of (the level of) FV and considering different dimensions of financial literacy. Using a sample of 8,554 individuals in Spain obtained from the 2016–17 Survey of Financial Competences, we construct a continuous measure of FV by using Nonlinear Principal Components Analysis (NLPCA). Then, we employ OLS and ordered probit regressions to examine the potential association between different dimensions of financial literacy and FV. The findings indicate that the level of FV is negatively related to self-perceived financial knowledge, while no statistically significant relationship is found regarding objective financial knowledge. Evidence also reveals that “highly financially included” individuals are more likely to exhibit financial resilience. These findings highlight the need for the development of financial education initiatives that are action-oriented.

show abstract

“…Л. аррондел, М. Хаупт, М.Х. Мансебон, д. ніколіні, М. Вельті, Я. Вірсма [3] презентовано компаративний аналіз заявленої проблеми. досить масш-табне бібліографічне видання дає можливість системно проаналізувати доробок Івана Прокопенка у галузі формування фінансової грамотності студентів [9].…”

Section: ярослав власенкоunclassified

The concept of financial literacy in the research of Ivan Prokopenko and foreign experts

Vlasenko¹

2022

View full text Add to dashboard Cite

The article is devoted to the disclosure of the essence of financial literacy as a key competence of a modern young person through the prism of the professional development of Ivan Prokopenko and foreign specialists. The research used methods – comparative historical, analysis, synthesis. In the article, the author revealed the key concept as a person's ability to understand and use financial skills, including managing personal finances, budgeting and investing, understanding certain financial principles and concepts such as: time value of money, compound interest, debt management and financial planning. The author noted in the article that Ivan Prokopenko paid considerable attention to the formation of students' financial literacy, the implementation of European standards of understanding and technologies for the formation of this competence. It is also stated that in the context of the formation of personal financial literacy in the educational process, I. Prokopenko stood for the positions of people-centeredness and a systemic approach. In developing the issue of meaningful and methodical support, the academician oriented the applicants to the formation of the ability to make conscious financial decisions. In this regard, issues of social and economic security, financial independence became crucial. This vision became the basis for the implementation of the initiative to introduce an individual learning trajectory for students of different levels of education at the G. S. Skovoroda Kharkiv National Pedagogical University The comparative analysis made it possible to distinguish the worldview target component, the practical competence component, and the strategic subject component in the content of the studied concept. In the research work of I. Prokopenko, U. Baitsakhan, M. Demertzis, A.T. Pasha, H. Picatosta, E.M. Hergins are expressive in their outlook on the target component. We see the study of global and national experience of financial literacy formation in force majeure conditions, when situations of uncertainty affect national and global economic systems, as a promising direction for further scientific research

show abstract

Financial literacy and financial education in Western Europe

Cited by 3 publications

References 0 publications

The role of financial literacy in consumer financial fraud exposure (via email) and victimisation: evidence from Spain

The role of financial literacy in consumer financial fraud exposure (via email) and victimisation: evidence from Spain

A Comprehensive Approach to Measuring Financial Vulnerability and Literacy: Unveiling Connections

The concept of financial literacy in the research of Ivan Prokopenko and foreign experts

Contact Info

Product

Resources

About