Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends

Abstract

Financial literacy is a critical life skill that is essential for achieving financial security and individual well-being, economic growth and overall sustainable development. Based on the analysis of research on financial literacy, we aim to provide a balance sheet of current research and a starting point for future research with the focus on identifying significant predictors of financial literacy, as well as variables that are affected by financial literacy. The main methods of our research are a systematic literature review, and bibliometric and bibliographical analysis. We establish a chronological path of the financial literacy topic in the scientific research. Based on the analysis of the most cited articles, we develop a comprehensive conceptual framework for mapping financial literacy. We identified a large number of predictors of financial literacy starting with education, gender, age, knowledge, etc. Financial literacy also affects variables such as retirement planning, financial inclusion, return on wealth, risk diversification, etc. We discuss in detail the main trends and topics in financial literacy research by involving financial literacy of the youth, financial literacy from the gender perspective, financial inclusion, retirement planning, digital finance and digital financial literacy. Our research can help policymakers in their pursuit of improving the levels of individual financial literacy by enabling individuals to make better financial decisions, avoid financial stress and achieve their financial goals. It can also help governments in their efforts in achieving sustainable development goals (SDGs).

Content analysis of the financial literature over time in the world

“…In choosing appropriate and standardized keywords, for some terms, we inspired ourselves with the conceptual framework and keywords proposed by Zaimovic et al [5] and shown in Figure 3. 2 Vosviewer has the option "All keywords" but in our unified dataset it would have not solved the problem Additionally, for duplicate records, the automatic keywords (Keyword Plus or Index Keywords) differ in many cases due to the specific algorithms used by the database's providers.…”

“…They provide maps of the state of the art in a given area of scientific knowledge, and they help identify different structures within a research field, hot topics and evolving research frontiers. These tools have been recently used in the domain of financial literacy [1][2][3][4][5] or in specific financial domains such as banking [6,7], insurance [8], Islamic insurance [9], consumer credit [2], ITC and financial education [10] and green finance [11].…”

Investigating Farmers’ Intentions to Reduce Water Waste through Water-Smart Farming Technologies

“…Unsustainable farming practices and environmental pollution have contributed to climate change and a worsening performance of the farming sector in many countries [17,18,37]. In fact, several regions are experiencing water shortages due to various reasons, including water overuse, competition for water, and decreased rainfall caused by climate change [7,38].…”

“…In developing countries, such as Algeria, many farmers still use inefficient and unsustainable farming methods. The adoption of innovative technologies remains a challenging issue [17,18]. Although the Algerian government has made efforts to develop the agriculture sector and achieve sustainability in energy and water use [19], efforts to promote sustainable practices among farmers, particularly in the area of water conservation, require further attention.…”

Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact

“…Botelho (2022) [62] demonstrate that advanced financial literacy has a positive impact on the decisions that individuals make regarding sustainable finance investments. Zaimovic et al (2023) [63] underline that enhancing financial literacy contributes to an increase in sustainable investments by individuals and the attainment of sustainable development goals. Beny et al (2023) [64] unveil that financial literacy holds significant importance for individuals in adopting sustainable and innovative practices.…”