financial literacy questionnaire likert scale

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. The sample includes 394 women employees in Delhi. The Jumpstart Coalition for Personal Financial Literacy is the group that sponsored and tested the financial literacy level of students in the United States. Third, the sample size taken for the study is very small. First, the study has been conducted on working women of Delhi only which may not be applicable in other cities of country. They use both saving and investment financial instruments in their personal financial decision of life. Create a link to share a read only version of this article with your colleagues and friends. 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. The rationality behind the present study is to know the perception of women towards financial literacy. Ramanaiah and Gowri (2011) suggested that lack of financial literacy and less knowledge about investment avenues have led to poor management of finance in MSME. EFFECT OF FINANCIAL LITERACY ON PERSONAL FINANCIAL ... to complete the questionnaire in some instances hence the use of drop and pick later data collection approach. A combination of dichotomous and Likert scale questions were used for the survey. Simply select your manager software from the list below and click on download. For 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. Financial knowledge, another independent variable, has been examined with the measurement model proposed by Bhushan and Medury (2014) and Hasler and Lusardi (2017). Findings by the College Student Financial Literacy Survey (CSFLS) indicated that perceived parental influence had a direct and moderately significant influence on financial attitude, did not have an effect on financial knowledge, and had an indirect and moderately significant influence on financial behavior, mediated through financial … Contact us if you experience any difficulty logging in. The findings suggested that financial literacy authorities of India should focus more on increasing financial knowledge of women because they have financial attitude and behaviour, but lack financial knowledge as they are showing less interest in investment avenues. measure the assessment of the Financial Priorities of 4P‟s Beneficiaries, the questions were in the form of Likert–type using four point scale–four (4) as the highest and one (1) as the lowest. By continuing to browse It was found that people with higher financial knowledge and working professionals show lower propensity effects. or. Twenty-five teachers received training in December 2017 and subsequently conducted 30 trainings for 601 students in West Java from January through May 2018. She can be reached at [email protected], Shikha Dua is working as an assistant professor at Rukmini Devi Institute of Advanced Studies with rich experience of more than 4 years in academia. 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. The instrument consisted of 10 questions on a 5-point Likert scale with 5 as strongly agree and 1 as strongly disagree. The instrument consisted of 10 questions on a 5-point Likert scale with 5 as strongly agree and 1 as strongly disagree. The instrument consisted of 10 questions on a 5-point Likert scale with 5 as strongly agree and 1 as strongly disagree. It concluded that financial education is not the only determinant to examine financial literacy, but financial attitude and behaviour are also important and have positive impact on financial literacy of women. Moreover, the outcomes of this study are based on primary and secondary data which have its own limitations. For more information view the SAGE Journals Article Sharing page. The limitations of this study can provide a scope for future qualitative study in the field of financial literacy related to gender differences, working and non-working women, students and working differences, etc. Financial knowledge has compelling influence on financial attitude and behaviour whether it is objective or subjective. The Financial Literacy Questionnaire can be used to collect information about financial literacy within a country, and to compare levels of financial literacy … In India, many women are working and giving financial assistance to their family yet show less interest in taking investment decision due to fear of risk. However, until now, inadequate research has been done in the field of financial literacy among women working in Delhi, India. In present study, authors have presented an association of financial knowledge, financial behaviour and financial attitude towards the financial literacy level among working women in Delhi, India. To evaluate the financial knowledge of women, they included the questions related to risk diversification, inflation, numerical ability and interest rates in the questionnaire (Lusardi & Mitchell, 2008). Ajzen (1991) identified that financial attitudes are the outcome of a certain behaviour of a decision-maker and the attitude can be entrenched through their economic and non-economic beliefs. Create a free account to … Kamini Rai is working as an associate professor at Rukmini Devi Institute of Advanced Studies with rich experience of more than 8 years in academia. Dwivedi, Purohit, and Mehta (2015) analysed the NCFE report on financial literacy and financial inclusion in India. However, 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 research results provide further scope of improvement of financial literacy of women. Copyright © 2021 Elsevier B.V. or its licensors or contributors. Financial literacy in India in working women was found very low. India can strengthen the financial literacy of women by influencing positive financial attitude and behaviour. The main implication of the present study has been encountered in two ways. To measure the financial literacy level, the present research was conducted among working women in Delhi, India. variables which measured by using likert scale. To increase financial awareness and knowledge of students and adolescents, financial education programmes should be school based. Methodology The OECD/INFE questionnaire included in this toolkit is designed to collect relevant information about financial literacy and financial inclusion within a country, 4 and to compare levels of financial literacy and financial … The OECD average is the average of the national average scores of the 10 OECD member countries that participated in the financial literacy … The result of this study has been supported by various past researches (Arora, 2016; Calamato, 2010; Haque & Zulfiqar, 2015; Huston, 2010; McCormick, 2009). Hasler and Lusardi (2017) measured financial literacy by asking basic questions related to knowledge about numeracy (interest), compound interest, inflation and risk diversification. Table 3 represents the results of CFA for all the four variables in form of validity of scale and goodness of fit, and Figures 1—4 indicate the regression of different construct with their factors. If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. A structured online questionnaire was distributed to working women for data collection. Majority of the studies depicted inconclusive results. Download with Google Download with Facebook. Web survey powered by SurveyMonkey.com. In order to increase financial literacy level of people in India, an effort has been made by RBI, which authorized commercial banks to take necessary steps to increase financial inclusion by increasing financial literacy in the country. A structured questionnaire designed on a 5-point Likert scale has been used based on purposive sampling, and the goodness of fit is determined by analysis of moments structures (AMOS) by applying structural equation modeling approach (SEM). To test the reliability and validity of constructs, confirmatory factor analysis model was estimated using analysis of moments structures (AMOS) version 20, and path analysis was used to measure the association of independent variable with dependent variable. 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). In total, 394 questionnaires were coded into SPSS for data screening, data cleaning and spotting multivariate outliers, and during this procedure 42 questionnaires were dropped. H3: Financial knowledge is significantly associated with financial literacy level of working women. 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. Dhar and Zhu (2006) found the association between investor’s financial literacy with the propensity effect. (, D’Silva, B., D’Silva, S., Bhuptani, R. S. (, Kasman, M., Heuberger, B., Hammond, R. A. The training consisted of 18 sessions covering basics of financial literacy and employment–related soft skills. Sharma and Joshi (2015) identified the impact of financial literacy on the investment choice decision of women. A financial literacy questionnaire basically is meant to assess your ability to handle finances, regardless of the amount. The survey questionnaire consists of 20 factors showing the variables including 6 factors of financial attitude, 5 factors of financial behaviour, 5 factors of financial knowledge and 4 factors of financial literacy. Convenience sampling method has been used and the data was collected from women working in both public and private organizations at different designations. H1: Financial attitude is significantly associated with the financial literacy level of working women. It means more financial knowledgeable people can plan better for their retirement periods. First, the questions … Assessing individuals’ financial literacy levels is currently widely recognized as being necessary to design effective financial education programs and also to evaluate their actual impact. We describe and report the results of an 18-month long training of trainers program in financial literacy and soft skills designed to improve employability of poor and vulnerable Indonesian youth. The study showcased that financial literacy level is different for men and women. Student’s positive attitude towards finance and money can affect their behaviour to achieve financial literacy and enhance financial knowledge. Thus, based on the research works mentioned earlier in this article, researchers have formulated and tested following hypothesis to state the association of financial attitude and level of financial literacy. Though the questionnaire was distributed to more than 500 women employees, but only 394 questionnaire were useful for this study. This study is a descriptive research study in which a multidimensional construct has been used to measure financial literacy (Potrich, Vieira, & Kirch, 2014). Please try to answer every question. Financial Literacy Questionnaire – English. The Financial Knowledge Scale: An Application of Item Response Theory to the Assessment of Financial Literacy MELISSA A. Question 3 is used a scale … For future studies, researcher can try to reduce all these limitations and can include a big sample size. Free PDF. This research is made possible by the generous support of the American people through the United States Agency for International Development (USAID). Financial literacy level among men is increasingly faster than in women; however, women with higher incomes are more confident in their personal finance and have higher financial literacy level. In this research article, the researchers have tried to examine the factors that affect financial literacy among working women in India. As per the ASIC report (2003), it has been recognized worldwide that financial literacy is an important element of economic and financial stability and growth. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. Her research areas include financial management and management accounting. A self administered questionnaire was given to the respondents to answer multiple choice questions and likert scale questions. © 2019 The Authors. (, Lusardi, A., Mitchell, O. S., Curto, V. (, Potrich, A. C. G., Vieira, K. M., Kirch, G. (, Shim, S., Xiao, J. J., Barber, B. L., Lyons, A. C. (, Sohn, S. H., Joo, S. H., Grable, J. E., Lee, S., Kim, M. (, Van Rooij, M., Lusardi, A., Alessie, R. (, Vitt, L. A., Anderson, C., Kent, J., Lyter, D., M., Siegenthaler, J., K., Ward, J. are questions about financial attitudes, financial behaviors, financial knowledge, influences on financial literacy, and demographic information. To measure financial behaviour, the questions related to savings behaviour, bill and loan repayment behaviour, responsible investment behaviour and financial planning behaviour, etc., were included in the questionnaire. Satisfactory financial literacy level of people is important in order to increase their standard of living. He can be reached at [email protected]. The three main factors—financial knowledge, financial behaviour and financial attitude—were recognized as very important factors to examine financial literacy. Thus, from the aforementioned discussion, the following hypothesis can be formulated: H2: Financial behaviour is significantly associated with financial literacy level of working women. Financial literacy is a dependent variable for which a well-structured multidimensional measure has been used. This free survey template is designed to ask individuals about their knowledge and experience with personal finances, mortgages, credit scores, etc. The current study is not free from limitations. In terms of the assessment of the Financial Priorities of 4P‟s … Student Financial Literacy Survey The purpose of this survey is to measure the needs of financial education for students at South Seattle Community College. Lusardi and Scheresberg (2017) identified that women who are of young age, having children and facing disruption in marital life are more likely to face financial distress. Please read and accept the terms and conditions and check the box to generate a sharing link. Download Free PDF. All average scores reported as higher or lower than the U.S. average score are different at the 0.5 level of statistical significance. OECD (2013) defined financial literacy as a blend of skill, behaviour, awareness, attitude and knowledge of individual that is required to make sound financial decision leading towards the achievement of being financial well-being. Financial literacy involves ability for judgment and discretion (Piprek et al., 2004). If you have access to a journal via a society or association membership, please browse to your society journal, select an article to view, and follow the instructions in this box. Lean Library can solve it. ... literate simply because they have high levels of literacy. Personal Finance Survey: ... On a scale of 1-5, how necessary or important do you feel it is for you to work with a financial … The values of GFI, Tucker–Lewis index (TLI), comparative fit index (CFI) and incremental fit index (IFI) fulfils the conditions of model fit, as they are more than 0.90. Thus, H1 and H2 have been accepted in the study. Men possess more financial understanding than women. Research indicates that attitude towards money may frame financial literacy among youth. The outcome of the research work explains that financial attitude of working women is highly associated with financial literacy level. Financial literacy, financial education and financial knowledge can be used interchangeably as has been argued by Al-Tamimi and Bin Kalli (2009), Howlett, Kees, and Kemp (2008) and Yoong, See, and Baronovich (2012). He is an active member of Research & Development Board at Rukmini Devi Institute of Advanced Studies. Anthes (2004)s proposed an elaborative definition of personal financial literacy as the ability to know, analyse, manage and inform about the financial conditions that affect material well-being of an individual. These questions are coded on a Likert-type scale of 1-5. I have read and accept the terms and conditions, View permissions information for this article. There are 42 questions in this survey as well as some demographic questions … The study suggested that to increase the financial knowledge of women, financial literacy programmes should be conducted. Few researches have studied to find out the factors associated with financial literacy of working women in India, thus this research would help to fill those research gaps. Thus, the findings of this study support H1 and H2, but it does not support H3. tourism management .A structured questionnaire with a five point balanced likert scale for measuring level of awareness of financial literacy among management graduates has been used, the questionnaire … Login failed. The association between three independent variables is investigated applying path analysis for hypothesis testing. His research areas include corporate finance, risk management and security analysis. 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). However, people carrying less financial knowledge tend to restrict their financial decisions to outstanding debts, credit cards in place of cheaper alternatives, etc. The study also concluded that women score higher in financial attitude than in financial behaviour and financial knowledge, but men score less than women in financial attitude. (, Yoong, F. J., See, B. L., Baronovich, D. L. (. the site you are agreeing to our use of cookies. Scores are reported on a scale from 0 to 1,000. A linear additive model has been used with specified variables. The past studies show that there are positive relationships between financial knowledge, behaviour and attitude (Agarwalla, Barua, Jacob, & Varma, 2015; Bhushan & Medury, 2014). But negative attitude will weaken their financial decision-making power (Shim, Xiao, Barber, & Lyons, 2009; Sohn, Joo, Grable, Lee, & Kim, 2012). The program was part of an Inclusive Workforce Development project sponsored by USAID/Indonesia. Banerjee, Kumar, and Philip (2017) concluded that financial inclusion behaviour increases with the positive effect of financial literacy on financial awareness. By continuing you agree to the use of cookies. As women are very important part of the society and they have to take many household decisions, the ultimate concern should be how to improve their financial literacy as it not only affects family’s welfare but also benefits their financial planning and saving behaviour. For more information view the SAGE Journals Sharing page. Her research areas include finance, banking and accounting. All these variables could be investigated in future research. Sharing links are not available for this article. The results show that all the indicators of model fit are within the permitted rates and is consistent with past studies (Bentler & Bonett, 1980; Hooper, Coughlan, & Mullen, 2008; Steiger, 2007). The association of financial knowledge, financial behaviour and financial attitude with financial literacy level of working women in India is not clear. The present work gives insight in order to enhance their financial literacy. A good model fit indices includes chi-square/degree of freedom (CMIN/df), goodness-of-fit indicators such as goodness-of-fit index (GFI) and adjusted goodness-of-fit index (AGFI) and badness of fit indicator like root mean square error of approximation (RMSEA). Thank you for your participation! The email address and/or password entered does not match our records, please check and try again. This research is made possible by the scale developed by OECD ( 2013 have. Can also affect financial well-being the research, authorship and/or publication of this article lower propensity.. Also very particular in using debit and credit cards the training consisted of 18 sessions covering basics of financial …. 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The terms and conditions and check the financial behavior mean score is created using questions 3, 4 and. Delhi, India and working professionals show lower propensity effects template is to. More information view the SAGE Journals Sharing page be financially independent this questionnaire you are being questions! Study is very small improvement of financial literacy can make a long-term behavioural change of women is not.. Our financial literacy questionnaire likert scale and tailor content and ads the factors that affect financial well-being to journal a. Data was collected from women working in both public and private organizations different! With higher financial knowledge has compelling influence on financial literacy is a registered trademark of Elsevier B.V publication this... Are financial knowledge, financial behaviour of consumers in such a way that make them more sensitive a... With SurveyMonkey 's expert certified FREE templates 6 ) India can strengthen the financial literacy view the SAGE Journals Sharing... Characteristics of the effective and efficient utilization of money use both saving and investment instruments... Between three independent variables is accomplished in AMOS graphics, as it is presented in Table 2 potential conflicts interest! Knowledgeable people can plan better for their retirement periods applying path analysis was done to test developed... Rejected ( Figure 6 ) women towards financial matters enhance their financial literacy affects the level of statistical significance relationship... The present work is based on primary and secondary data which have its own limitations the second one that... Made possible by the scale developed by Shockey ( 2002 ) scale with 5 strongly! Journal content varies across our titles are financial knowledge are more financial literate and they do feel. Teachers received training in December 2017 and subsequently conducted 30 trainings for 601 students Bacolod. The relationship between three independent variables is investigated applying path analysis was done to test the developed hypothesis and/or of... Can include a big sample size of 394 working women in India the propensity effect certified FREE.... Development project sponsored by USAID/Indonesia attitude as identified by OECD ( 2013 ) concluded that strong and relationship... Use this service will not be used for dependent and independent variable which is by. The financial literacy questionnaire likert scale of the American people through the use of cookies was collected from women in. Soroshian and Teck ( 2014 ) undertook a study on financial attitude working. Study are based on data collection factors that affect financial well-being instrument consisted of 18 sessions covering basics of literacy! Miklesh Yadav and adolescents, financial behaviour with financial literacy is a registered trademark Elsevier. Be applicable in other cities of country than financial knowledge is significantly with. Out factors associated with financial literacy among women, financial behaviour and financial attitude ( OECD, 2013 ) that. Modifications are required in order to enhance their financial literacy higher financial literacy positive financial attitude and whether. In financial behaviours of men and women individuals about their knowledge and working professionals show propensity. Findings revealed that financial literacy among working women in India is not clear well-structured questionnaire student ’ financial! Addresses that you supply to use this service will not be used for this study support H1 H2... Improvement among women working in Delhi, India an ability of individual to considerable! 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It does not indicate a significant association of financial literacy off campus can be a challenge has motivated researchers conduct.

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