The level of financial literacy among poor – methodological and empirical results

Authors

  • Tomasz Potocki University of Rzeszów, Faculty of Economics, Political Economy Departament

DOI:

https://doi.org/10.18778/0208-6018.326.14

Keywords:

Financial literacy, poverty, financial decisions, financial capabilities, social exclusion, financial education, household finance

Abstract

One of the methods which help to decrease the level of vulnerability to poverty and social exclusion is the raise the level of financial literacy among poor households. However, to do this effectively one needs to possess the reliable measurement tool, particularly adopted to intellectual capacities of the poor. Unfortunately there is a lack of such tests available in scientific literature. In the light of the current constraints, in author’s opinion, one needs to construct financial literacy test dedicated to poor using evolutionary approach. That is, the ones which not only tests financial literacy but also numeracy, statistical and risk literacy. In authors opinion, the statistical and risk literacy is much more important and more universal then financial literacy. To prove that point author positively verify following thesis “Risk literacy is effective predictor of financial literacy level, especially among poor and vulnerable to poverty population (exogenously and endogenously)”. The author’s study contribute to dynamically developing, interdisciplinary field of research devoted to household finance, especially to financial decisions under poverty and microeconomics of poverty. The structure of the article support formulated goals. The research method was applied to answer the research questions.

Downloads

Download data is not yet available.

Author Biography

Tomasz Potocki, University of Rzeszów, Faculty of Economics, Political Economy Departament

dr

References

Anand P., Lea S. (2011), The psychology and behavioural economics of poverty, „Journal of Economic Psychology”, vol. 32, p. 284–293, doi.org/10.1016/j.joep.2010.11.004.
Google Scholar

Atkinson A., Messy F.-A. (2012), Assessing Financial Literacy in 12 Countries An OECD Pilot Exercise, „Netspar Discussion Papers” vol. 01, arno.uvt.nl/show.cgi?fid=114072 [Dostęp15.03.2015].
Google Scholar

Bertrand M., Mullainathan S., Shafir E. (2010), A Behavioral-Economics View of Poverty, „American Economic Review”, vol. 94, no. 2, s. 419–423, doi: 10.1257/0002828041302019.
Google Scholar

Blaug M. (1995), Metodologia ekonomii, Wydawnictwo Naukowe PWN, Warszawa.
Google Scholar

Bogacka-Kisiel E. (red.) (2012), Finanse osobiste. Zachowania, Produkty, Strategie, Wydawnictwo Naukowe PWN, Warszawa.
Google Scholar

Del Missier F. Mäntylä F., Bruine de Bruin W. (2011), Executive functions in decision making: An individual differences approach, „Thinking and Reasoning” vol. 16, no. 2, p. 69–97, doi: 10.1080/13546781003630117.
Google Scholar

Chen H., Volpe R.P. (1998), An analysis of personal financial literacy among college students. „Financial Services Review” vol. 7, p. 107–128, doi: 10.1016/S1057-0810(99)80006-7.
Google Scholar

Christelis D., Jappelli T., Padula M. (2010), Cognitive Abilities and Portfolio Choice, „European Economic Review” vol. 54, p. 18–39.
Google Scholar

Cokely E.T, Galesic M., Schulz E., Hhazal S., Garcia-Retamero R. (2012), Measuring Risk Literacy: The Berlin Numeracy Test, „Judgment and Decision Making”, vol. 7, no. 1, p. 25–47.
Google Scholar

Dewey M.E., Prince M.J. (2005), Cognitive Function, [w:] A. Börsch-Supan, A. Brugiavini, H. Jürges, J. Mackenbach, J. Siegriest, I.G. Weber (red.), Health, Aging and Retirement in Europe: First Results from the Survey of Health, Aging and Retirement in Europe, Mannheim Research Institute for the Economics of Aging, Mannheim.
Google Scholar

Domański H. (2002), Ubóstwo w społeczeństwach postkomunistycznych, Instytut Spraw Publicznych, Warszawa.
Google Scholar

Flejterski S. (2007), Metodologia finansów. Podręcznik akademicki, Wydawnictwo Naukowe PWN, Warszawa.
Google Scholar

Frederick S. (2005), Cognitive reflection and decision making. „Journal of Economic Perspectives”, vol. 19, no. 4, p. 25–42, doi: 10.1257/089533005775196732.
Google Scholar

Gathergood J., Weber J. (2014), Self-Control, Financial Literacy & the Co-Holding, „Journal of Economic Behavior & Organization”, vol. 107, p. 455–469, doi: 10.1016/j.jebo.2014.04.018.
Google Scholar

Gigerenzer G. (2015), Risk Savvy. How to make good decisions, Viking Adult, New York.
Google Scholar

Golinowska S. (1996), Polska bieda. Kryteria. Przeciwdziałanie. Pomiar, IPiSS, Warszawa.
Google Scholar

Hastings J.S., Madrian B.C., Skimmyhorn W.L. (2012), Financial Literacy, Financial Education and Economic Outcomes, „NBER Working Paper no. 18412”. MA: Cambridge, http://www.nber.org/papers/w18612.pdf [Dostęp 01.12.2014].
Google Scholar

Hoelzl E., Kapteyn A. (2011), Editorial, „Journal of Economic Psychology”, vol. 32, p. 543–545, doi: 10.1016/j.joep.2011.04.005.
Google Scholar

Hung A.A., Parker A.M., Yoong J.K. (2009), Defining and Measuring Financial Literacy. „Rand Working Paper WR–708”, https://www.rand.org/content/dam/rand/pubs/.../RAND_WR708.pdf [Dostęp 01.01.2015].
Google Scholar

Huston S.J. (2010), Measuring Financial Literacy, „The Journal of Consumer Affairs”, vol. 44, nr 2, s. 296–316, http://dx.doi.org/10.2139/ssrn.1945216.
Google Scholar

Iwanicz-Drozdowska M. (red.) (2011), Edukacja i świadomości finansowa, Wydawnictwo SGH, Warszawa.
Google Scholar

Johnson E., Sherraden M.S. (2007), From Financial Literacy to Financial Capability among Youth, „Journal of Sociology & Social Welfare”, vol. 34, no. 3, p. 119–146.
Google Scholar

Klapper L.F., Lusardi A., Panos G.A. (2012), Financial literacy and financial crisis, „NBER Working Paper no. 17930”, MA: Cambridge, http://www.nber.org/papers/w17930.pdf [Dostęp 01.12.2014], doi: 10.3386/w17930.
Google Scholar

Kuchciak I., Świeszczak M., Świeszczak K., Marcinkowska M. (2014), Edukacja finansowa i inkluzja bankowa w realizacji koncepcji silver economy, Wydawnictwo Uniwersytetu Łódzkiego, Łódź.
Google Scholar

Lipkus I. M., Samsa G., Rimer B.K. (2001), General performance on a numeracy scale among highly educated samples, „Medical Decision Making”, vol. 21, s. 37–44, doi: 10.1177/0272989X0102100105.
Google Scholar

Lusardi A. (2008), Financial Literacy: An Essential Tool for Informed Consumer Choice?, „NBER Working Paper no. 14084”, MA: Cambridge, www.nber.org/papers/14084 [Dostęp 01.12.2014], doi: 10.3386/w14084.
Google Scholar

Lusardi A., Mitchell O.S. (2007), Baby Boomer Retirement Security: The Role of Planning, Financial Literacy, and Housing Wealth, „Journal of Monetary Economics”, vol. 54, p. 205–224, doi: 10.1016/j.jmoneco.2006.12.001.
Google Scholar

Lusardi A., Mitchell, O.S. (2011), Financial Literacy and Planning: Implications for Retirement Wellbeing, „NBER Working Paper no. 17078”, MA: Cambridge, www.nber.org/papers/17078 [Dostęp 01.12.2014], doi: 10.3386/w17078.
Google Scholar

Lusardi A., Mitchell O.S. (2013), The economic importance of financial literacy – theory and evidence, „NBER Working Paper no. 18952”, MA: Cambridge, www.nber.org/papers/w18952 [Dostęp 01.12.2014], doi: 10.3386/w18952.
Google Scholar

Lusardi A., Tufano P. (2009), Debt Literacy, Financial Experiences, and Overindebtedness, „NBER Working Paper no. 14808”, MA: Cambridge, www.nber.org/papers/14808, doi: 10.3386/w14808 [Dostęp 01.12.2014].
Google Scholar

Maison D. (2013), Polak w świecie finansów, PWN, Warszawa.
Google Scholar

Mandell L. (2007), Financial literacy of high school students, [w:] J.J. Xiao (red.), Handbook of Consumer Finance Research, Springer, New York, p. 163–183.
Google Scholar

Moore D.L (2003), Survey of Financial Literacy in Washington State: Knowledge, behavior, Attitudes, and Experiences, „SESRC Technical Report 03–39”, Social and Economic Sciences Research Center Washington State University, http://www.researchgate.net/publication/265728242_Survey_of_Financial_Literacy_in_Washington_State_Knowledge_behavior_Attitudes_and_Experiences [Dostęp 01.05.2015].
Google Scholar

Mullainathan S., Shafir E., Bertrand M. (2006), Behavioral Economics and Marketing in Aid of Decision Making Among the Poor, „Journal of Policy Making and Marketing”, vol. 25, no. 1, s. 8–23, http://dx.doi.org/10.1509/jppm.25.1.8.
Google Scholar

Narodowy Bank Polski (2015), Stan wiedzy i świadomości ekonomicznej Polaków 2015, NBP, Warszawa.
Google Scholar

OECD (2014), PISA 2012 Results: Students and Money: Financial Literacy Skills for the 21st Century, „OECD Publishing”, vol. VI, http://dx.doi.org/10.1787/9789264208094-en.
Google Scholar

Panek T. (2011), Ubóstwo, wykluczenie społeczne i nierówności. Teoria i praktyka pomiaru, Oficyna Wydawnicza SGH, Warszawa.
Google Scholar

Potocki T. (2016), Poziom wiedzy finansowej wśród mieszkańców terenów peryferyjnych zagrożonych ubóstwem, „Zeszyty Naukowe UEW”, Wrocław (w druku).
Google Scholar

Rooij M. van, Lusardi A., Alessie R., (2011), Financial Literacy and Stock Market Participation, „Journal of Financial Economics”, vol. 101, no. 2, s. 449–72, doi: 10.1016/j.jfineco.2011.03.006.
Google Scholar

Schwartz L.M.L., Woloshin S.S., Black W.C.W., Welch H.G.H. (1997), The role of numeracy inunderstanding the benefit of screening mammography, „Annals of Internal Medicine”, vol. 127, p. 966–972, doi: 10.7326/0003-4819-127-11-199712010-00003.
Google Scholar

Sherraden M. S. (2013), Building blocks of financial capability, [w:] J.M. Birkenmaier, M.S. Sherraden, J.C. Curley (red.) Financial Capability and Asset Building: Research, Education, Policy, and Practice, Oxford University Press, New York & Oxford, p. 1–43.
Google Scholar

Świecka B. (red.) (2008), Bankructwa gospodarstw domowych. Perspektywa ekonomiczna i społeczna, Difin, Warszawa.
Google Scholar

Topińska I. (red.) (2005), Pomiar ubóstwa. Zmiany koncepcji i ich znaczenie, IPiSS, Warszawa.
Google Scholar

Wobker I., Lehmann-Waffenschmidt M., Kenning P., Gigerenzer G. (2012), What Do People Know About the Economy? A Test of Minimal Economic Knowledge in Germany. A Test of Minimal Economic Knowledge in Germany, „Dresden Discussion Paper Series in Economics”, nr 3/12, http://dx.doi.org/10.2139/ssrn.2190337.
Google Scholar

Published

2017-05-22

How to Cite

Potocki, T. (2017). The level of financial literacy among poor – methodological and empirical results. Acta Universitatis Lodziensis. Folia Oeconomica, 6(326), [217]-234. https://doi.org/10.18778/0208-6018.326.14

Issue

Section

Articles

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 > >> 

You may also start an advanced similarity search for this article.