Overview

Financial literacy of family households is the ability to understand and effectively use various
financial skills, including personal financial management, budgeting, and investing. Financial
literacy in every households is the foundation of your relationship with money, and it is a
life-long journey of learning. The earlier you start, the better off you will be, because
education is the key to success when it comes to money.
In an article written by Huston 2010, it is important to clearly differentiate financial literacy
from financial literacy education.
https://doi.org/10.1111/j.1745-6606.2010.01170.x
1.1 Factor Affecting Financial

High level of public financial literacy will have an impact on in increasing level of
financial inclusion that subsequently reduces the gap and low rigidity income trap to
improve the people’s welfare that will lead to a decrease in poverty rates, Ehrbeck (2014).

According to Christine (2014), an increasing level of financial inclusion will contribute

positively to sustainable local and national economic growth and support the stability of
the financial system.

According to Monticone (2012) evaluation of financial education programs like,

“Promoting Financial Capability in Kenya and Tanzania” and “Uganda Microfinance
Consumer education Program” reveal that beneficiaries of these programs are more likely
to; have a bank savings account, increase their financial education awareness and
subsequently improve their financial decision-making such as savings behaviors, financial
planning and budgeting as compared to those who did not participate in such programs.

FinScope Tanzania, 2017) survey shows that the level of financial literacy in Tanzania is
relatively low and most of the households in the country obtain financial information
from radios, televisions as well as informally from friends and family members.

In long term, the existence of good financial management may have an impact on
business continuity, Kalantarie et al. (2013).

Lusardi and Mitchell, (2009) found that individuals having greater education levels have
higher access to financial knowledge and are, consequently, more financially literate.

As clearly reported by Murphy (2013), the level of education is also a relevant

determinant of financial literacy. The author revealed that education is not important in
determining financial literacy levels.

other studies such as Gallery et al. (2011) confirm that financial literacy follows a linear
relationship, meaning that it is an increasing curve in which case the older households
tend to have more financial education followed by younger ones.
 Hassan Al‐Tamimi and Bin Kalli (2009), and Hawat et al. (2016) from United Arab
Emirates and Malaysia, respectively, consider age as an insignificant factor of
determining households’ financial literacy and financial decisions.

Dvorak and Hanley (2010) age is not a statistically significant variable in influencing
financial literacy and financial decision making.

Contrary, Wagland and Taylor (2009), Alessie et al. (2011), Crossan et al. (2011), and
Thapa and Nepal (2015) consider gender as a non-factor which influences the financial
knowledge and financial decisions of the households.

Monticone (2012) found that wealth has a little, but positive, effect on financial literacy.

In turn, Hastings and Mitchell (2011) provide experimental evidence to show that
financial literacy is related to wealth.

According to Lusardi and Mitchell (2011), as quoted “While it is important to assess how
financially literate people are, in practice it is difficult to explore how people process
economic information and make informed decisions about household finances.”

FinScope Tanzania, 2017) survey tested the ability of the respondents to use the financial
literacy knowledge to tackle a real life personal finance management problem.

https://www.tandfonline.com/doi/full/10.1080/23322039.2020.1792152

1.2 Behaviour and Financial Literacy

Slightly different, the Presidents Advisory Council on Financial Literacy (PACFL

2008) in Hung (2009) defined financial literacy as the ability to use knowledge and skills
to manage financial
resources effectively for a lifetime of financial well-being

Meanwhile, according to
Houston (2010) in research Widyawati (2012) stated that financial literacy occurs when
an individual has a set of
skills and abilities that make the person is able to utilize the existing resources to achieve
the expected goals.

Individuals who have a responsible financial behavior tends to be effective in using

money, such as making a
budget, save money and control spending, investing, and paying their obligations on time
(Nababan and Sadalia,
2012)

Individuals can not simply

rely on the knowledge and financial resources alone, but they also must have a strong
conviction, which comes
from an external impetus in managing finances in order to be prosperous one (Ida and
Dwinta, 2010).

according to Adri Putra, Sri Handayani and Ari testifying (2014) considered to be
very important, given the current growth in private consumption continues to increase
along with the increase in
household incomes and economic growth are improving.

Nababan & Sadalia (2012) to manage financial resources effectively in order to

achieve the welfare of one’s life, individuals need a basic financial knowledge and skills
in finance.

Financial education is a long process that spurred individuals to have a financial plan in
the future in order to get welfare according to
patterns and lifestyle which they live (Nababan and Sadalia, 2013).

Financial literacy covers broad areas such as spending and credit, insurance, and savings
and investment
(Rashid, 2012)

Financial literacy model has been developed by Lindsey (2011) through research which
entitled A Review of
Howard University's Financial Literacy Curriculum.

As stated by Angela A. Hung et al (2009) in Working Paper entitled Defining and

Measuring Financial
Literacy stated that the definition of financial literacy lies largely in the ability to use the
knowledge and skills to
achieve financial well-being, and therefore the required behavior adequate to the
underlying

Sandra J. Huston (2009) stated that financial literacy is a measure of how well an
individual can understand and use information related to finance.

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De Bassa Scheresberg (2013) noted that people with higher level of financial literacy are
more confident in making personal financial decision and their monetary outcomes are
appropriate
several studies concluded that people across the world, including India, are suffering from
financial illiteracy and necessary actions are required to address this problem (Atkinson &
Messy, 2012; Brown & Graf, 2013; Lusardi & Mitchell, 2011)

The difference in financial literacy level has been found on the basis of demographic
variables such as gender, age, income and qualification (Lusardi, Mitchell, & Curto,
2010).

Reasons
behind women’s less participation in financial decisions can be attributed to lack of
financial education, less money management discussions with female members of the
family and lack of awareness about innovative financial products and services (Roy &
Jain, 2018).

Devi (2016) concluded that gender is one of the prominent factors that
influence financial literacy among the individuals in India, and Indian women are
experiencing difficulties in making decisions regarding savings and buying financial
products.

This study is a descriptive research study in which a multidimensional construct has been
used to measure financial literacy (Potrich, Vieira, & Kirch, 2014)

In contrast to the aforementioned, Huston (2010) argued that financial education and
financial knowledge are just two dimensions of financial literacy and that financial
literacy goes beyond these two.

Atkinson and Messy (2012) recommended only three dimensions to judge financial
literacy as it is justified and is widely used in literature.

Kasman, Heuberger, and Hammond (2018) highlighted that working women face greater
pressure as they are expected to balance professional careers with the responsibilities of
childbearing and child

Bhushan and Medury (2014) concluded that in order to enhance financial literacy among
generations, the focus should be on developing favourable financial attitudes among the
people of the country.

Ibrahim and Alqaydi (2013) concluded that education can improve personal financial
attitude, thereby reducing dependence on credit cards.

Human behaviour that is pertinent to financial decision-making and money management

such as constructing appropriate budget programme and controlling it, quick payment of
bills and regular saving nature is called financial behaviour (Bhushan & Medury, 2014;
Kalekye & Memba, 2015).

Atkinson and Messy (2012), a positive financial behaviour of individual such as

appropriate planning for expenditures and caring financial stability enhances their
financial literacy level, whereas negative financial behaviour like largely depending upon
credits and loans weaken their financial well-being.

Sages and Grable (2009) produced evidence in their study that individuals with lower
level of financial risk tolerance face difficulty in financial decision, and they are
unsatisfied with their financial management competency.

However, women are more particular for making budget and keeping track of their
finances, but they are lacking in financial knowledge which affect some
aspect of their financial behaviour (OECD, 2013).

According to Lusardi (2006), women with lower level of financial literacy are less likely
to take retirement plans and they are more dependent on their family and friends for
their saving and investment planning.

Bonga and Mlambo (2016) highlighted concern on financial literacy improvement among
women, particularly in developing nations.

Bhushan and Medury (2014) concluded that in order to enhance the financial literacy
level of individual, government should focus on building positive financial behaviour and
attitude along with financial education.

Sanderson (2015) defined financial literacy as the capability of an individual to use

his/her knowledge and skills to take appropriate financial decision for effective
management of financial resources.

Hasler and Lusardi (2017) measured financial literacy by asking basic questions related to
knowledge about numeracy (interest), compound interest, inflation and risk
diversification.

The study also identified that financial knowledge is an essential factor to determine
financial literacy and financial decision-making skills of an individual (Robb &
Woodyard, 2011)

Van Rooij, Lusardi, and Alessie (2011) identified that financial knowledge has positive
association with retirement planning and individuals possessing financial knowledge
are more financial literate.

D’Silva, and Bhuptani (2012) observed that females lack financial knowledge and they
are highly risk averse.

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1.3 Financial Literacy

As defined by the HRSDB (2012), quantitative literacy or numeracy is “the knowledge

and skills required to effectively manage mathematical demands” (p.22).

Numeracy was determined by Smith and colleagues (2010)to be “by far the most
predictive of wealth among all cognitive variables” (p. 18). In short, mathematical
literacy has an impact on an individual’s financial health and prosperity.

Behrman and colleagues (2010) worked to isolate the causal effect of financial literacy on
wealth accumulation and found that, compared to other variables, wealth accumulation
was dependent on financial understanding and skills more than any other variable.

There is substantial evidence that financial literacy programs “can make an important
contribution to the well-being of vulnerable groups” (McFayden, 2012, p. 1).

According to Grant (2012), personal flourishing also includes living and doing well,
having a positive identity, having family and friends as support mechanisms, financial
stability, education, and a commitment to children’s flourishing minds.

The Momentum (2010) curriculum was originally designed to develop knowledge and
skills for people who are living on a low income or who are experiencing significant
barriers in their lives.

The FLEC (2011) also argued the importance of “increasing rigorous research and
evaluation on financial literacy” (p. 11) for the purpose of better understanding
how to establish effective programs and practices.

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sa=t&source=web&rct=j&url=https://files.eric.ed.gov/fulltext/EJ1085813.pdf&ved=2ahU
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According to Jump$tart Coalition, out of the fifty U.S. states, only three states such as
Utah, Missourni and Tennessee, require at least one-semester course devoted to personal
financefor high school graduation ( Jump$tart Coalition, 2010).

Because in many states, financial education remains an elective course when state
budgets are tight, these courses are more likely to be cut than added (Bernard, 2010).
 Also, in states where financial education is not required but encouraged, instruction might
not be consistent across the state (Fiscal Focus, 2009).

On the other hand, 73% of American young adults ages 23 to 28 do not understand basic
economics and investments, so the future retirement of that group is quite unpredictable
(InvestorInsight, 2010).

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sa=t&source=web&rct=j&url=http://scholarworks.sjsu.edu/cgi/viewcontent.cgi
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1.4 Saving Habits

Household saving is important because it affects a family’s level of living, emergency
reserves, and the ability to meet financial goals such as making purchases using cash
rather than credit (Among & Devaney, 2010; Hira, 1987; Lee, Park, & Montalto, 2000).
Saving out of current in-come is necessary for retirement security, for helping rent-ers
become homeowners without excessive risks, and for dealing with emergency situations
(Yuh & Hanna, 2010). Livingstone and Lunt (1993) found regular savers to have different
psychological motivations than borrowers, viewing debt either as a failure or as a normal
part of everyday life. Those who saved while simultaneously having debt felt more
optimistic and in control of their lives than those with debt but no savings (Furnham,
1997). Aggregate personal and household saving also directly impacts the economy as a
whole (Hira, 1987), and personal saving is increasingly necessary for retirement security
as responsibility for this long-term savings goal shifts from employers and the
government to individuals (Center for Retirement Research, 2005).

Age, income, income uncertainty, saving horizon, homeownership, household

composition, health status, education, race/ethnicity, self-employment, and
unemployment have all been linked to some aspect of saving. Researchers have found
that saving increases with age (Chang, 1994; Katona, 1975; Mirer, 1979). Furnham
(1985) found age to be strongly and linearly related to respondents’ attitudes toward
saving, and age has been found to determine how regularly a household saves, where a
household saves, and why a household saves. Yuh and Hanna (2010) found the predicted
probability of saving to be the highest among respondents under age 30, with the
predicted probability generally decreasing with age.

Saving and income are positively related, with saving increasing with income (Chang,
1994; Foster, 1981; Hefferan, 1982; Lee et al., 2000; Yuh & Hanna, 2010). In the real
world, uncertainty about future income affects household saving or net worth
accumulation (Yuh & Hanna, 2010). Some researchers have reported that households
facing higher income risk are more likely to save (Carroll, 1994; Deaton, 1991; Lusardi,
1998; Sandmo, 1970; Zeldes, 1989), while others have found no significant relationship
between income uncertainty and saving behavior (Fisher, 2010b)
Economists, psychologists, and sociologists have also discussed the importance of “time
horizon” in intertemporal choices (Lea, Webley, & Walker, 1995). Rabinovich and
Webley (2007) argue that saving horizon is one of the most robust covariates of saving
behavior in previous research, and aids in predicting saving behavior. Lusardi (2000)
found a positive relationship between planning and saving, and Lee et al. (2000) and
Fisher and Montalto (2010, 2011) found that a long-term financial planning horizon is
positively related to saving. Households that are willing to have their money tied up for
longer periods of time have been found to have higher levels of saving (Avery &
Kennickell, 1991), and individuals with a relatively high “subjective discount rate”
(Friedman, 1957) were expected to be more likely to save (Lea et al., 1995). Ainslie
(1975, 1992) provided a detailed review of the history and implications of time horizon.

Researchers have found that saving is higher among homeowners (Avery & Kennickell,
1991; Bosworth, Burtless, & Sabelhaus, 1991; Browning & Lusardi, 1996; Rha et al.,
2006; Yuh & Hanna, 2010) and Chen and DeVaney (2001) found homeownership was
positively related to the adequacy of quick, comprehensive emergency funds. Bosworth et
al. (1991) found saving to vary by marital status and the presence of dependent children,
with singlehead households with children having the lowest saving rates in the
population. Other researchers also found that single parents had the lowest saving rates in
the population, while married couples with no children had the highest saving rates
(Avery & Kennickell, 1991; Bosworth et al., 1991; Chang, 1994; Yuh & Hanna, 2010).
Lee et al. (2000) found that younger couples without children and older households
without dependent children were more likely to save than younger single households or
households with dependent children. Single female householders were significantly less
likely to save as compared with comparable married households, and single females were
also significantly less likely to report spending less than income than single males (Yuh &
Hanna, 2010). The presence of a dependent child under age 19 in a household was
associated with a significantly lower likelihood of saving as compared with otherwise
comparable households that did not contain a dependent child (Yuh & Hanna, 2010).
Households with dependent children have been found to save less as a way to meet
childrearing costs (Bosworth et al., 1991; Browning & Crossley, 2001; Douthitt & Fedyk,
1989). Mason (1975) found larger family size to be associated with lower levels of
saving, ceteris paribus.

Saving behavior is affected by an individual’s health status (Davies, 1981; Palumbo,

1999), and Kennickell and Lusardi (2005) argued that it is important to model health risks
in studies of consumption and saving. Several researchers have found that health affects
total wealth accumulation (National Bureau of Economic Research, 2000; Smith, 1999;
Wu, 2003), and Fisher and Montalto (2010, 2011) found a negative relationship between
poor health and saving. However, Yuh and Hanna (2010) found that households with
poor health are more likely to save than households with fair or excellent health.

Solmon (1975) indicated that average and marginal propensities to save rise with the
educational attainment of the household head. In a study of saving in Britain, Furnham
(1985) found education had a curvilinear differentiation ef-fect on respondents’ attitudes
related to saving. Saving has been shown to be higher among higher education groups
(Attanasio, 1993; Avery & Kennickell, 1991; Bernheim & Scholz, 1993; Lee et al., 2000;
Yuh & Hanna, 2010), while wealth holdings have been shown to be particularly low for
households whose head has low education (Bernheim & Scholz, 1993; Hubbard, Skinner,
& Zeldes, 1995).

Yuh, Y., & Hanna, S. D. (2010). Which households think they save? Journal of Consumer
Affairs, 44, 70-97

Furnham, A. (1997). The half full and half empty glass: The views of the economic
optimist and pessimist. Human Relations, 50, 197-209

Center for Retirement Research at Boston College (2000, January). The adequacy of
household saving. (CRR Working Paper No. CRR WP 2000-01). Chestnut Hill, MA:
Engen, E. M., Gales, W. G., & Uccello, C. E. Center for Retirement Research at Boston
Col-lege. Retrieved from
http://crr.bc.edu/images/stories/Working_Papers/wp_2000-01.pdf

Hira, T. (1987). Households’ Financial management factors influencing solvency and

satisfaction. The Journal of Japan Society of Household Economics, 10, 199-210.
Mikyla sent Today at 12:18 AM
Anong, S. T., & DeVaney, S. A. (2010). Determinants of adequate emergency funds
including the effects of seeking professional advice and industry affiliation. Family and
Consumer Sciences Research Journal, 38(4), 405-419.
Mikyla sent Today at 12:18 AM
Lee, S., Park, M., & Montalto, C. P. (2000). The effect of family life cycle and Financial
management practices on household saving patterns. Journal of Korean Home Economics
Association English Edition, 1, 79-92
Mikyla sent Today at 12:18 AM
Livingstone, S., & Lunt, P. (1993). Savers and borrowers: Strategies of personal Financial
management. Human Relations, 46, 943-985

Chang, Y. R. (1994). Saving behavior of U.S. households in the 1980s: Results from the
1983 and 1986 Survey of Consumer Finances. Financial Counseling and Planning, 5, 1-
21

Katona, G. (1975). Psychological economics. New York: Elsevier.

Mirer, T. W. (1979). The wealth-age relation among the aged. American Economic
Review, 69, 435-443.

Furnham, A. (1985). Why do people save? Attitudes to, habits of, saving money in
Britain. Journal of Applied Social Psychology, 15, 354-373.

Foster, J. F. (1981). The reality of the present and the challenge of the future. Journal of
Economic Issues, 15, 963-968
Carroll, C. (1994). How does future income affect current consumption? The Quarterly
Journal of Economics, 109, 111-148

Hefferan, C. (1982). Determinants and patterns of family saving. Home Economics

Research Journal, 11, 47-55

Deaton, A. (1991). Saving and liquidity constraints. Econometrica, 59, 1221-1248

Sandmo, A. (1970). The effect of uncertainty on saving decisions. Review of Economic

Studies, 37, 353-360

Zeldes, S. P. (1989). Consumption and liquidity constraints: An empirical investigation.

Journal of Political Economy, 97, 305-346
Fisher, P. J., & Montalto, C. P. (2010). Effect of saving motives and horizon on saving
behaviors. Journal of Economic Psychology, 31, 92-105

Lea, S. E. G., Webley, P., & Walker, C. M. (1995). Psychological factors in consumer
debt: Money management, economic socialization, and credit use. Journal of Economic
Psychology, 16, 681-701.

Rabinovich, A., & Webley, P. (2007). Filling the gap between planning and doing:
Psychological factors involved in the successful implementation of saving intention.
Journal of Economic Psychology, 28, 444-461

Lusardi, A. (2000, August). Explaining why so many households do not save. (University
of Chicago Working paper No. 0001). Chicago. Retrieved from
http://harrisschool.uchicago.edu/about/publications/working-papers/pdf/wp_00_1.pdf

Avery, R., & Kennickell, A. B. (1991). Household saving in the U.S. Review of Income
and Wealth, 37, 409-432

Friedman, M. (1957). A theory of the consumption function. Princeton: Princeton

University Press

Ainslie, G. W. (1975). Specious reward: A behavioral theory of impulsiveness and

impulse control. Psychological Bulletin, 82, 463-496

Bosworth, B. P., Burtless, G., & Sabelhaus, J. (1991). The decline in saving: Evidence
from household surveys. Brookings Papers on Economic Activity, 1, 183-256

Browning, M., & Lusardi, A. (1996). Household saving: Micro theories and micro facts.
Journal of Economic Literature, 34, 1797-1855
Rha, J.-Y., Montalto, C. P., & Hanna, S. D. (2006). The effect of self-control mechanisms
on household saving behavior. Financial Counseling and Planning, 17, 3-16.

Chen, C., & DeVaney, S. A. (2001). The effect of life cycle stages and saving motives on
the probability of emergency fund adequacy. In J. M. Hogarth (Ed.), Proceedings of the
Association for Financial Counseling and Planning Education (pp. 176-185). Columbus,
OH: AFCPE.

Browning, M., & Crossley, T. F. (2001). The life-cycle model of consumption and
saving. Journal of Economic Perspectives, 15(3), 3-22.

Douthitt, R. A., & Fedyk, J. M. (1989). The use of savings as a family resource
management strategy to meet childrearing costs. Journal of Family and Economic Issues,
10, 233-248

Mason, A. (1975). An empirical analysis of life-cycle saving, income, and household size.
Unpublished doctoral dissertation. University of Michigan, Ann Arbor, MI

Mason, A. (1975). An empirical analysis of life-cycle saving, income, and household size.
Unpublished doctoral dissertation. University of Michigan, Ann Arbor, MI

Palumbo, M. G. (1999). Uncertain medical expenses and precautionary saving near the
end of the life cycle. The Review of Economic Studies, 66, 395-421. National Bureau of
Economic Research. (2000, February). Choice, chance, and wealth dispersion at
retirement. (NBER Working Paper No. 7521). Cambridge, MA: Venti, S. F., & Wise, D.
A. Retrieved from http://www.nber.org/papers/w7521.pd

Wu, S. (2003). The effects of health events on the economic status of married couples.
Journal of Human Resources, 38, 219-230.

Smith, J. P. (1999). Healthy bodies and thick wallets: The dual relation between health
and economic status. Journal of Economic Perspectives, 13, 145-166.

Solmon, L. C. (1975). The relation between schooling and savings behavior: An example
of the indirect effects of education. In F. T. Juster (Ed.), Education, Income and Human
Behavior (pp. 253-293). New York: McGraw-Hill

Attanasio, O. P. (1993). A cohort analysis of lifecycle accumulation of financial assets.

Economic Research, 47, 323-354.

Avery, R., & Kennickell, A. B. (1991). Household saving in the U.S. Review of Income
and Wealth, 37, 409-432.

Bernheim, B. D., & Scholz, J. K. (1993). Private pensions and household saving.
Unpublished manuscript. University of Wisconsin, Madison, WI.
 Hubbard, R. G., Skinner, J., & Zeldes, S. P. (1994). Expanding the lifecycle model:
Precautionary saving and public policy. American Economic Review, 84, 174-179

1.5 Spending Habits

Faced with a reduced income, many families wait six months or longer before they
reduce.Their spending, accumulating debt and unpaid bills. Families need to cut back
on spending right away by developing a spending plan to help pay
Their bills and living expenses.

Many people try to hide financial problems from themselves or family members. Not
facing problems can be very destructive because the worry and stress caused by
financial uncertainty and lack of cash may be worse than the financial problem itself.
It’s important to look realistically at the situation and actively seek solutions to
problems, despite the discomfort.
According to CR Hayhoe (2009), her studies show families respond to reduced income
by cutting back on their spending. Spending for nonessentials such as luxuries,
vacations, eating out, and home furnishings is eliminated or reduced first. As the period
of unemployment or reduced income continues, many families also report reduced
spending for basic needs including food, shelter, transportation and medical care.
Families also say they revise their budgets. Most make a new spending plan that
includes a revised plan for getting the bills paid. This is an time when you may find it
Useful to use a written spending plan.

Celia Ray Hayhoe, Ph.D., CFP®(2009), Families Taking Charge: Setting Spending
Priorities, Family Resource Management Specialist

DW Schanzenbach et al., states that there is no surprise that low-income households

allocate a greater share of their spending to basic needs than do high-income households,
the composition of this spending and the changes that have occurred over time are less
well-known. Low-income households have seen their real consumption fall over the last
thirty years, while the fraction of their budget spent on basic needs has risen; for middle-
and high-income households, consumption has risen and the share spent on basic needs
has decreased. All three groups of households now spend more on housing and health
care than they did previously, but the increase in spending on housing has been more
pronounced for low-income households. These changes varied considerably by region: in
the Northeast, the share of spending on housing grew more than in other regions, while
the share of spending on food fell.

According to Yung C. & Kwang C. (1982), Family expenditures during different stages
of the family life cycle (as indicated by the age of the family head) are analyzed to
determine how consumer spending patterns vary. A model of expenditures for consumer
goods is constructed, and a life cycle hypothesis of consumer spending is tested. Age of
family head was found to have significant influence on expenditures for each of 17
budget items. Compared with nonaged groups, the aged spend more on food, household
utilities, medical care, personal care, and gifts and contributions; they allocate less to
clothing, house furnishings and equipment, automobile purchase and operations,
education, and recreation. For shelter, household operations, and other transportation the
patterns are mixed relative to expenditures by middle-aged and young groups. Some of
the social and legislative implications of these findings—more accurate measurement of
the effect of inflation on retirement benefits

YUNG-PING CHEN, KWANG-WEN CHU (1982), Household Expenditure Patterns:

The Effect of Age of Family Head

Lovingood and Firebaugh (1978)6 pointed out that money management tasks like “who
makes” and “who implements” the decisions predominantly are the joint responsibility of
young couples.

Dennis and Donald (1983)7 stated that financial decisions are more likely to be made by
the wife and husband separately when the wife is working for financial reasons. Sex-role
attitude and education level are the most important in determining the role structure for
the implementation of financial tasks.

Singh (2002)8 highlighted that at home decisions regarding purchases and investment are
taken jointly by both husband and wife. In the matter of making adjustments like looking
after the house, cooking, cleaning and caring for children are largely the responsibility of
women.

Gupta (2005)9 reported in her study that the level of women autonomy is very low in
India. Women still sought their husband’s permission when they want to purchase
something for themselves, particularly in northern India. Generally, women are in charge
of house management but have little freedom to move out or to be involved in the major
decisions of their personal requirements. There is no budget for them. In the lives of
women, power to take decisions is in the hands of men.

Bains (2010)10, in her research article titled, “Cost of Living Quite High in Ludhiana”
published in ‘The Tribune’ revealed that in many middle class families, most men hand
over only a limited fixed sum to their women and expect them to manage the household
expenses for the full month without asking for anything more. Under the circumstances,
balancing the family budget becomes a wild goose chase for the homemakers and it turns
out to be an uphill task for them to make both ends meet.

Government of India (2008)11, in its National Family Health Survey, reported that
married women who work and are paid in cash, ninety-one per cent of them decide how
their earning will be spent, either alone or together with their husbands. Only thirty-seven
per cent of currently married women in Punjab participate in making all the decisions
relating to their own health care, making large household purchases, making household
purchases for daily households needs, and visiting their own family or relatives. Eleven
per cent of currently married women participate in none of these four decisions. Only
twenty-seven per cent of women have some money that they can decide how to use and
only fifteen per cent of women have a bank or savings account that they themselves use.
 Two in five women in Punjab are allowed to go by themselves to the market, to a health
facility and to places outside their own community.

Lovingood, Rebecca P.; and Firebaugh, M. Francille (1978), “Household Task

Performance Roles of Husbands and Wives”, Home Economics Research Journal, Vol. 7,
September, pp. 20-33.

Dennis, L. Rosen; and Donald, H. Granbois (1983), “Determinants of Role Structure in

Family Financial Management”, The Journal of Consumer Research, Vol. 10, No. 2,
September, pp. 253-258.

Singh, Preeti (2002), “Women in the Corporate World in India: Balancing Work and
Family Life”, Paper
Presented and Published as Conference Proceedings, Uppsala University, Sweden,
March. 9 Gupta, Shakuntla (2005), Women Development in India - A Comparative
Study, Anmol Publications Pvt. Ltd., New Delhi, pp. 90-94, 157.

10 Bains, Harpreet Kaur (2010), “Cost of Living Quite High in Ludhiana”, The Tribune,
April 17, Chandigarh.

Govt. of India (2008), National Family Health Survey (NFHS-3) India,Punjab, 2005-06,
International Institute for Population Sciences Deonar, Mumbai, October, pp. 24-25.
1.6 Financial Knowledge
According to Borden (2008), From pre-test to post-test, the seminar effectively increased
students' financial skills, increased responsible attitudes toward credit, and decreased
avoidant attitudes toward credit.

According to a research conducted by Robb, (2009), Taking a personal finance class may
not always assist students in making specific, personal financial decisions.

According to a research conducted by Avard (2005), That the test results do support the
notion that recent high school graduates are uninformed about daily financial matters

Sensation seeking, materialism, the Student Attitude Toward Debt scale, gender, and
grade point average were not the only factors that led to debt accumulation. Students who
had more debt faced more tension and had a lower financial well-being. (Morvilitis,
2006)

According to a research conducted by Robb (2011), Financial conduct is influenced by

both objective and subjective financial knowledge, with subjective knowledge having a
greater relative effect. Financial satisfaction, income, education, age, race, and ethnicity
are some of the other factors that affect financial conduct.

According to Chan (2012), the theory that attitudes toward debt, dysfunctional
impulsivity, perceived behavioral regulation, financial knowledge, and employment are
all connected to students' propensity to engage in good financial management activities.
Students who handle their money well are less likely to get into debt and have a better
financial situation.

There is a connection between income and personal finance awareness. Financial

awareness was also found to have a major positive relationship with self-efficacy. Self-
efficacy was higher in students who were more knowledgeable. (Heckman, 2011)

According to a research conducted by Xiao (2011), Personal finance courses in high

school and college are related to increased subjective financial awareness. Subjective
financial awareness, on the other hand, decreases the probability of engaging in risky
financial conduct. Furthermore, objective credit awareness decreases the probability of
risky payment and borrowing habits.

References

Borden et, al. (2008), Changing college students’ financial knowledge, attitudes, and
behavior through seminar participation

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3D_o59jmBIFv8J

Robb et, al. (2009), Effect of personal financial knowledge on college students’ credit
card behavior

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3D7kmZj90FmDgJ

Avard et, al. (2005), The financial knowledge of college freshmen

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3DHlq42eovCV0J

Norvilitis et, al. (2006), Personality Factors, Money Attitudes, Financial Knowledge, and
Credit‐Card Debt in College Students1

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3DQPQaYIF4iDkJ

Robb et, al. (2011), Financial knowledge and best practice behavior.
 https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3DftuaHH_tTFIJ

Chan et, al. (2012), Financial knowledge and aptitudes: Impacts on college students'
financial well-being

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3D2KBpW0Dh4rQJ

Heckman et, al. (2011), Testing the Role of Parental Debt Attitudes, Student Income,
Dependency Status, and Financial Knowledge Have in Shaping Financial Self-Efficacy
among College Students.

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3DO7nqnrsP6iUJ

Xiao et, al. (2011), Financial education, financial knowledge, and risky credit behavior of
college students

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+knowledge+college+students&oq=financial+kn#d=
gs_qabs&u=%23p%3D9DP_VidmRdEJ

1.7 Financial Literacy in Philippines

According to Sarsour (2017), Financial institutions can play a bigger role in improving
financial literacy among students by holding daily financial sessions and trainings.
Finally, in view of the position of the ministry of higher education, universities, and
financial institutions, future studies should broaden the scope of research.

According to a research conducted by Torrente (2015), Financial literacy influences

financial management attitudes and activities, and the two have a clear connection,
implying that as literacy improves, so does behavior.

Without the financial accounting element, an enterprise's financial management is

crippled. (Barte, 2012)

According to a research conducted by Imelda (2017), In the Philippines, financial literacy

among experienced and pre-service teachers is extremely poor. As a result, financial
illiteracy is widespread among educators, which reflects their students' financial literacy
skills and the majority of Filipinos' economic situation.
According to Sucuahi (2013), Multiple regression analysis was used to assess the
determinants of financial literacy, and it found that educational attainment has a major
effect on financial literacy. However, the findings revealed that gender has no impact on
financial literacy among microbusiness owners.

Based on the measurements used, the findings revealed that those entrepreneurs have low
levels of overall financial literacy. Furthermore, while there is a positive link between
financial expertise and skills, it is very poor. (Guliman, 2015)

References

Nada Anwar Sarsour (2020), financial literacy on business atudents in gaza strip

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+luzon&oq=#d=gs_qabs&u=%23p
%3DzWShC6B_EdMJ

Maria Francesca V Torrente (2015), The Unbankables: Assessing financial literacy and
financial behavior of BPI Globe BanKO customers

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+luzon&oq=#d=gs_qabs&u=%23p
%3DFUeBzopbupMJ

Rhenozo Barte (2012), Financial literacy in micro-enterprises: the case of Cebu fish
vendors

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+visayas&oq=financial+literacy+in+#d=
gs_qabs&u=%23p%3DoLd2DjlRfOMJ

Imelda CM et, al. (2017), Financial literacy of professional and pre-service teachers in the
Philippines

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+visayas&oq=financial+literacy+in+#d=
gs_qabs&u=%23p%3DikCJXdJygRQJ

William T Sucuahi (2013), Determinants of financial literacy of micro entrepreneurs in

Davao City

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+mindanao&btnG=#d=gs_qabs&u=
%23p%3DNkRFCu2pXzEJ
Sheevun Di O Guliman (2015), An evaluation of financial literacy of micro and small
enterprise owners in iligan city: Knowledge and skills

https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=financial+literacy+in+mindanao&btnG=#d=gs_qabs&u=
%23p%3D2rU9BTJns3kJ