financial literacy ↔ financial decision making

Relations (1)

related 3.17 — strongly supporting 8 facts

Financial literacy is directly linked to financial decision-making as it serves as a tool to mitigate cognitive biases and improve the quality of choices, as evidenced by [1], [2], and [3]. Research by Lusardi (2012) and Arumsari et al. (2024) explicitly examines the correlation between these two concepts, with [4] confirming a statistically significant positive relationship between them.

Facts (8)

Sources

Examining Behavioural Aspects of Financial Decision Making - OUCI ouci.dntb.gov.ua C. Gautam, R. Wadhwa, T. V. Raman · Financial University under the Government of the Russian Federation 3 facts

referenceLusardi A. published an NBER Working Paper in 2012 titled 'Numeracy, financial literacy, and financial decision-making'.

measurementThe study by Y. K. Arumsari et al. (2024) found a positive and substantial relationship between fluid intelligence (FI) and financial literacy (FL), and a positive and statistically significant relationship between both FI and FL with financial decision-making (FDM).

referenceThe study by Y. K. Arumsari et al. (2024) in 'Finance: Theory and Practice' examines the relationship between fluid intelligence (FI) and financial literacy (FL) on the financial decision-making (FDM) of female lecturers in the Dpk LLDikti Region VII, Indonesia.

The Psychological Drivers of Financial Decision-Making - ijsrm ijsrm.net International Journal of Scientific and Research Publications 2 facts

claimFinancial literacy reduces the impact of psychological biases on the financial decision-making process, thereby enhancing the quality of financial decisions.

claimThe research article 'The Psychological Drivers of Financial Decision-Making' asserts that financial literacy reduces the impact of psychological biases on the financial decision-making process, thereby enhancing the quality of financial decisions.

The Impact of Cognitive Biases on Professionals' Decision-Making frontiersin.org Frontiers in Psychology 1 fact

referencePrograms aimed at improving financial literacy have been used to mitigate the impact of cognitive biases on financial decision-making, as noted by Lusardi and Mitchell (2014).

Analysing the behavioural, psychological, and demographic ... - OUCI ouci.dntb.gov.ua Parul Kumar, Md Aminul Islam, Rekha Pillai, Taimur Sharif · Elsevier BV 1 fact

referenceKomara authored the paper 'Does financial literacy impact financial decision making among the government employee,' published on page 174.

Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org Financial Planning Association 1 fact

referenceFinke and Huston (2014) concluded that financial literacy in the United States is too low to expect consumers to make effective financial decisions within complex product markets.