Financial literacy, debt, risk tolerance and retirement preparedness: Evidence from New Zealand

Noviarini, Jelita; Coleman, Andrew; Roberts, Helen; Whiting, Rosalind H.

doi:10.1016/j.pacfin.2021.101598

Cited by 39 publications

(24 citation statements)

References 34 publications

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“…Proof of the usefulness of financial schooling structures is jumbled together in previous literature because of the treatment's exclusive robustness. Despite the most potent treatments, it seems necessary for the best positive outcomes (Noviarini et al, 2021), there is evidence of positive results and short Intercession (Barthel & Lei, 2021). This results in our first hypotheses: H# 1.…”

Section: Hypotheses Developmentmentioning

confidence: 85%

Encouraging financial literacy for Younger: Effects on self-confidence.

Hussain

2022

JSSMS

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Financial literacy is an important ability to control non-public wealth and precise financial health. Consequently, it is crucial to evaluate the impact of intercession to boom monetary focus and confidence in the maximum vulnerable corporations in society of based in Pakistani population under 30 years. We carried out an effect evaluation of an hour speech addressed to adults. We discover that intercession does now not drastically impact understanding but extensively and (in component) Overconfidence. Our important finding is that intercession will increase human being’s without extensively impacting expertise. We also discovered the end result of the intercession to be overconfident, however best within the questions asked equally both before and after the intercession. We also examine 3 different tactics to future research. the first is to discover what period and type of intercession can affect both expertise and self-belief. Any other exciting question is that one-of-a-kind teaching equipment and strategies can produce lasting results in grownup financial training. finally, it might be good to remember the effects of creating actual financial decisions.

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Section: Hypotheses Developmentmentioning

confidence: 85%

Encouraging financial literacy for Younger: Effects on self-confidence.

Hussain

2022

JSSMS

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“…Furthermore, from the inductive process, the Construct of Risk Knowledge, originally in Cordell's framework, is removed due to the practicality aspect. Meanwhile, the Financial Literacy construct was introduced based on evidence that shows a high association of this factor to the risk tolerance level of an individual discovered (Hermansson & Jonsson, 2021;Noviarini et al, 2021), which is expected to improve the validity of the instrument.…”

Section: Discussionmentioning

confidence: 99%

“…Recent studies have shown that the level of financial literacy affects a person's behavior and risk tolerance toward investments (Hendarto et al, 2021;Hermansson & Jonsson, 2021;Noviarini et al, 2021).…”

Section: Financial Literacymentioning

confidence: 99%

The Face and Content Validity of an Instrument for Measuring Financial Risk Tolerance

Hadi

Shafidan

Razali

et al. 2023

JCIA

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Accurate evaluation of investment risk tolerance is critical in an investment decision-making process because a mismatch between the risk an investor could tolerate and the risk-return expectations could lead to frustration towards the actual financial gains or financial losses. This study aims to develop a valid instrument (or scale) for self-directed Malaysian investors to measure financial risk tolerance based on four main constructs, i.e., risk attitude, risk propensity, risk capacity, and financial literacy. An initial 36-item instrument was developed based on the assessment framework from Cordell (2001), which subsequently was examined by four lay experts for face validity. Consequently, according to Andrian et al. (2018), seven professional experts, comprising theoretical, industry practitioner, and psychometric experts, were involved in reviewing the relevancy of the content of each item towards measuring financial or investment risk tolerance level. As a result, the instrument is deemed to have a good face value, with 94.4% of the items rated highly at 4 or 3 (out of the maximum rating of 4) by lay experts. Out of the 36 items, only 5.56% are rated 1 or 2, and 16.7% of the items require revision in terms of their face value and clarity. The content validity exercise resulted in high scores of more than 0.83 cut scores based on Lynn (1986) for the scale content validity index (S-CVI), with nine items recorded as item content validity index (I-CVI) below 0.83. The S-CVI improved further to 0.90 after the removal of items with low I-CVI. The findings have also successfully produced a valid instrument that can measure the financial risk tolerance level of investors in Malaysia.

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“…Banking clients' decisions are affected by many parameters in the financial market, and these investments are directly associated with the overall risk-taking level and financial risk tolerance. Many studies have examined the impact of demographic, personal type and financial literacy parameters on risk tolerance that are age, gender, marital status, ethnic background, educational level, number of dependents, income level, and wealth (Haliassos & Bertaut, 1995;Lippi & Rossi, 2020;Mishra & Mishra, 2014;Noviarini, Coleman, Roberts, & Whiting, 2021;Wang & Hanna, 1998;Thanki & Baser, 2021). Banking clients' overall risk-taking levels and financial risk tolerance are important to understand whether the clients who are using interestbased and interest-free banking systems are different or not.…”

Section: Literature Reviewmentioning

confidence: 99%

Comparison of Risk Tolerances and Investment Decisions of Participation Bank Customers and Conventional Bank Customers

Selçuk

Ülev

Burgazoğlu

2022

Sosyal Ekonomik Araştırmalar Dergisi

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This study investigates the structure of financial risk tolerances and risk perceptions of participation and conventional bank customers. Our results show that conventional bank clients have a higher average in both overall risk tolerance and financial risk tolerance. This means that participation bank clients are more risk-averse. However, the basis of the participation account includes profit-loss sharing, namely, risk sharing. Therefore, participation account holders were expected to be more risk-taking investors. The results show the opposite and support the managers and employees of participation banks who claim that their customer portfolios are not ready to invest in riskier products such as mudaraba and musharakah.

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Financial literacy, debt, risk tolerance and retirement preparedness: Evidence from New Zealand

Cited by 39 publications

References 34 publications

Encouraging financial literacy for Younger: Effects on self-confidence.

Encouraging financial literacy for Younger: Effects on self-confidence.

The Face and Content Validity of an Instrument for Measuring Financial Risk Tolerance

Comparison of Risk Tolerances and Investment Decisions of Participation Bank Customers and Conventional Bank Customers

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