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Finance.PhDresearchon.com

SAMPLE PHD THESIS ON

FINANCIAL LITERACY    The purpose of this research is multiple. The first is to collect data describing the level of financial literacy of citizens and to present them to the public in order to raise the sensitivity and general awareness of the population on this topic. Secondly, based on the results of the survey, an insight is given on which additional specific issues should be included in the survey in the future in order to better measure financial literacy. Namely, the OECD recommends that each country include an important socio-demographic variable or content issue crucial to the economic situation or culture of the country in which the survey is conducted. The term financial literacy is described by the OECD (2005, 13) as "a process in which financial consumers / investors improve their understanding of financial products and concepts and, through information, instructions and / or objective advice, develop the necessary skills and security to become more aware of financial risks and opportunities in order to make informed decisions, to know where to go for help and to take other effective measures to improve their financial well-being". This process raises the level of individual responsibility of individuals in understanding and taking risks in making financial decisions and when planning investments. Financial literacy refers to knowledge, attitudes and behaviors towards money or family and business finance. Financial literacy is measured in relation to the results of other countries and its level is conditioned by position externalities. Financial literacy can also be measured in the same country after a time shift of 3 to 5 years and more. The position of a country is better or worse than those of other countries or in relation to the recorded progress within that country. The level of financial literacy is measured by the issues they show knowledge, attitudes and behavior towards money, inflation, savings, interest rates, investments, debt, loans, financial contracts and other financial choices. Therefore, financial literacy can generally be defined as a combination of information, knowledge, skills, attitudes and behaviors necessary for making sound financial decisions that ultimately bring individual financial benefits. Financial literacy is important in understanding financial products and making sound financial decisions because it reduces the number of individual and family as well as entrepreneurial failures as well as the risk of poverty and contributes to economic growth and development. The research results represent the valuable identification of financial literacy characteristics of individual population groups and serve policymakers in determining goals and priorities for financial training and education. On the international stage, financial literacy and financial education projects have been developing over the past decade, and a significant impetus has been generated by the emergence and expansion of the financial crisis in 2008. In order to create and manage financial literacy policies, it is important to carry out a national measurement of financial literacy and, on the basis of results, develop a national financial education strategy and promote financial literacy. Measuring financial literacy provides zero or basic results that are important because they identify priorities and enable the setting of the objectives of the national financial education strategy and international comparison and 


Finance.PhDresearchon.com

FINANCIAL LITERACY

measurement of progress in the next time periods.    Much of the literature on this topic relates to popular OECD (2008; 2011; 2013; 2014) published books. In scientific literature, the topic of financial literacy is "young", since most articles have only been published in the last ten years. Various databases are used for research, such as the Household Budget Survey, as well as other national or international surveys. In this work, a user-friendly tool developed by the OECD and which measures the level of financial literacy. This is also the literature review focused mainly on those studies that measure financial literacy, and less on the causality of financial literacy in relation to savings in general, pension savings, debt and indebtedness or in relation to risk behaviors. Research has shown that the financial literacy of the population is important for all countries, regardless of their development. Thus, Lusardi and Mitchell (2011) showed that the majority of the population in the developed part of the world were not even familiar with even the most basic economic concepts needed to make decisions about reasonable savings and investments, and established a low financial literacy of the US population. Authors have found that poorer information is particularly related to people with lower incomes and lower levels of education, and is significantly more present in women and minority communities. Furthermore, research has shown that the measurement of financial knowledge through a set of same issues in different countries points to a generally low level of financial literacy, regardless of the development of financial markets and the way in which the pension system is organized in those countries. Also, gender and age of respondents significantly mark financial literacy in all countries in the sample. Women have less financial knowledge than the older part of the population. Pension planning has proven to be a good approximation of financial literacy. Atkinson and Messy (2012) compared the financial literacy results of 14 countries. The research has shown that in a number of countries it is possible to apply the same group of issues on the basis of which simple indicators of financial literacy are created. There is a significant area for improving financial knowledge in each of the countries observed, even if they belong to a group of developed countries. In all countries, lower values are calculated for the calculation of compound interest, and a lack of knowledge of risk diversification is also noticeable. Confidence in your own financial literacy is often a characteristic of the respondents. They prefer to record the wrong answer, rather than admit they do not know the answer. More levels of financial literacy are shown by men. In countries with higher results in testing the behavior component, higher results are found in testing the knowledge component, but there is still room for analysis and explanation of causality. It's the same with the attitude of attitudes and behaviors.The results of the research suggest that inequity in financial literacy is most likely affected by poorer education and / or lower incomes. The results are internationally comparable and are a valuable basis for the creation of national policies and strategies. Atkinson and Messy (2013) on the results of the International Financial Literacy Survey 2012 continue to promote the issue of financial inclusion through financial education for targeted groups of citizens. Data analysis identifies groups that are financially excluded and explains the reasons why they have poorer financial literacy. Although the orientation of work on recommendations to economic policy makers, this research is useful for analyzing data from the perspective of exclusion. Lusardi and Mitchell (2014) made a detailed overview of the research on the economic aspects of the importance of financial literacy. The survey provides a clear overview of the results of the examination and the comparison of financial literacy in different countries, in relation to socio-demographic variables such as gender, age, education, income, working status, minority affiliation and place of residence. Also, from each research segment a valuable literature review is given. Examples of financial literacy ratings in 


Finance.PhDresearchon.com

FINANCIAL LITERACY

countries experiencing inflation have been presented, as opposed to countries with experience of deflation. An interesting difference also occurs between your own assessment of financial literacy in relation to real knowledge. The heterogeneity of the population in terms of financial literacy is present in all countries, and greater homogeneity is found in population subgroups. This finding is important because it suggests a different approach in treating the effects and consequences of poor financial literacy. Costs due to poor financial literacy are difficult to calculate, and should be compared with the costs of investing in financial education. The causality between financial knowledge and economic well-being is an area that is open to further research. Likewise, there is a wide scope for researching the links between financial knowledge, costs and benefits, as the cost of investing in financial education must be effective. The latest research on financial literacy versus risk (Lusardi, 2015) focuses on a part of financial literacy that measures knowledge and behaviors towards risk and risk diversification. The empirical assessment shows that financial literacy, or understanding of risk, has an effect on the planning of retirement and more careful savings. The author believes that part of the knowledge and behaviors towards risk is an extremely important part of financial literacy, because financial decisions and savings decisions are closely related to risk management. Poor literacy endangers the ability to use financial instruments on an individual and business micro-level, and has the consequences for the functioning of the overall financial market.

REFERENCES                     

OECD (2005). Improving Financial Literacy: Analysis of Issues and Policies, Paris: OECD. OECD (2008). Improving Financial Education and Awareness on Insurance and Private Pensions, Paris: OECD. OECD (2011). Improving Financial Education Efficiency: OECD-Bank of Italy Symposium on Financial Literacy, Paris: OECD.  OECD (2013). Women and Financial Education: Evidence, Policy Responses and Guidance, Paris: OECD.  OECD (2014). Financial Education for Youth: The Role of Schools, Paris: OECD. Lusardi, A. (2015). Risk Literacy, Italian Economic Journal, 1 (1), 5 - 23. Atkinson, A. & Messy, F. (2013). Promoting Financial Inclusion through Financial Education: OECD/ INFE Evidence, Policies and Practice. OECD Working Papers on Finance, Insurance and Private Pensions, 34, Paris: OECD. Lusardi, A. & Mitchell, O. S. (2011). Financial Literacy around the World: An Overview, Journal of Pension Economics and Finance, 10 (4), 497 - 508.  Lusardi, A. & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence, Journal of Economic Literature, 52 (1), 5 - 44.

PhD Thesis on Financial Literacy Sample  

Hi! The most important information about PhD thesis on financial literacy in here, read more http://finance.phdresearchon.com/

PhD Thesis on Financial Literacy Sample  

Hi! The most important information about PhD thesis on financial literacy in here, read more http://finance.phdresearchon.com/

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