Impact of Financial Attitude, Financial Knowledge, and Financial Behavior on Financial Literacy: Jiangxi Institute of Fashion Technology Case Study

Rapeepat So-in; Feng  Wang; Busaya  Vongchavalitkul

doi:10.60027/ijsasr.2024.4314

Authors

Rapeepat So-in Southeast Bangkok University, Thailand https://orcid.org/0009-0000-6451-2433
Feng Wang Southeast Bangkok University, Thailand https://orcid.org/0009-0008-0315-9806
Busaya Vongchavalitkul Southeast Bangkok University, Thailand https://orcid.org/0000-0002-0177-9234

DOI:

https://doi.org/10.60027/ijsasr.2024.4314

Keywords:

Financial Attitude; , Financial Knowledge; , Financial Behavior; , Financial Literacy

Abstract

Background and Aims: With today's development of the social economy, financial literacy, as one of the essential qualities for contemporary social citizens, has been receiving more and more attention. Financial literacy not only affects the improvement of personal financial management ability but also affects the stability and sustainability of the overall economic operation of the country. This study investigates the impact of financial attitude, knowledge, and behavior on financial literacy: A case study of teachers and employees at Jiangxi Institute of Fashion Technology.

Material and Method: A questionnaire was administered to 307 teachers and staff members from the Jiangxi Institute of Fashion Technology who voluntarily participated in the survey using convenience sampling. The analysis involved descriptive statistics, which is composed of frequency, percentage, mean, and standard deviation, and inferential statistics, which is composed of correlation coefficient and multiple regression analyses.

Results: The results revealed significant associations among the financial attitude, financial knowledge, financial behavior, and financial literacy of teachers and employees. The total impact of financial attitude, financial knowledge, and financial behavior on the financial literacy of teachers and employees, was .412 (R2=.412, F=70.894, p≤.000). Positive attitudes were found to be correlated with increased literacy, underscoring the significance of financial attitude, financial knowledge, and financial behavior. However, all variables had a different impact on the financial literacy of teachers and employees. The financial attitude had an impact of .187 (β=.187, t=3.431, p≤.000) on the financial literacy of teachers and employees. The financial knowledge had an impact of .212 (β=.212, t=3.947, p≤.000) on the financial literacy of teachers and employees. The financial behavior had an impact of .375 (β=.375, t=6.879, p≤.000) on the financial literacy of teachers and employees. This study pioneered an examination of the intricate connections between financial literacy, attitude, knowledge, and behavior within the unique context of an academic institution in China. It has not only illuminated the current financial landscape among teachers and employees but also provided a significant opportunity for their professional development. This research also contributed actionable insights to foster positive changes in the financial behaviors of academic communities, ultimately promoting financial literacy and empowerment.

References

Andarsari, P.R., & Ningtyas, M.N. (2019). The role of financial literacy on financial behavior. Journal of accounting and business education, 4(1), 24-33.

Arianti, B.F. (2018). The influence of financial literacy, financial behavior, and income on investment decisions. Economics and Accounting Journal, 1(1), 1-10.

Banerjee, A., Kumar, K., & Philip, D. (2017). Financial literacy, awareness, and inclusion. ISI Working Paper, https://www. isid. ac. in/~ epu/acegd2017/papers/KamleshKumar. pdf.

Baptista, S.M.J., & Dewi, A.S. (2021). The influence of financial attitude, financial literacy, and locus of control on financial management behavior. International Journal of Social Science and Business, 5(1), 93-98.

Bellofatto, A., D’Hondt, C., & De Winne, R. (2018). Subjective financial literacy and retail investors’ behavior. Journal of Banking & Finance, 92, 168-181.

Budiono, E. (2020). Analysis Financial Knowledge, Financial Attitude, Income, Locus of Control, Financial Management Behavior Masyarakat Kota Kediri. Jurnal Ilmu Manajemen, 8(1), 284–295.

Chowa, G.A.N., Despard, M., & Osei-Akoto, I. (2012). Financial Knowledge and Attitudes of Youth in Ghana. https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1033&context=csd_research

Christina, L., & Wijaya, F.F. (2021). Financial Literacy Influencing Factor Analysis to Students in Batam City. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(2),129-137.

Dai, R. M., Kostini, N., & Tresna, P. W. (2021). The influence of financial attitude and financial literacy on behavioral finance: A study on leading small and medium enterprises in Cimahi City, Indonesia. Review of Integrative Business and Economics Research, 10, 322-329.

de Bassa, S.C. (2013) Financial literacy and financial behavior among young adults: evidence and implications. Numeracy, 6(2),1–21. doi:10.5038/1936-4660.6.2.5

Dewi, V., Febrian, E., Effendi, N., & Anwar, M. (2020). Financial literacy among the millennial generation: Relationships between knowledge, skills, attitude, and behavior. Australasian Accounting, Business and Finance Journal, 14(4), 24-37.

Ergün, K. (2018). Financial literacy among university students: A study in eight European countries. International journal of consumer studies, 42(1), 2-15.

Farida, M.N., Soesatyo, Y., & Aji, T.S. (2021). Influence of financial literacy and use of financial technology on financial satisfaction through financial behavior. International journal of education and literacy studies, 9(1), 86-95.

Garg, N., & Singh, S. (2017). Financial Literacy among Youth. International Journal of Social Economics, Emerald Group Publishing Limited, 45(1), 173-186.

Goyal, K., & Kumar, S. (2021). Financial literacy: A systematic review and bibliometric analysis. International Journal of Consumer Studies, 45(1), 80-105.

Herawati, N. T., Candiasa, I. M., Yadnyana, I. K., & Suharsono, N. (2018). Factors that influence financial behavior among accounting students in Bali. International Journal of Business Administration, 9(3), 30-38.

Hikmah, H., & Rustam, T. A. (2022). Analysis Financial Literacy dan Financial Attitude Terhadap Financial Management Behavior Dan Financial Satisfaction. Prosiding Seminar Nasional Ilmu Sosial Dan Teknologi (SNISTEK), 4, 176–181. Retrieved from https://ejournal.upbatam.ac.id/index.php/prosiding/article/view/5244

Humaira, I., & Sagoro, E.M. (2018). Pengaruh Pengetahuan Keuangan, Sikap Keuangan, Dan Kepribadian Terhadap Perilaku Manajemen Keuangan Pada Pelaku Umkm Sentra Kerajinan Batik Kabupaten Bantul. Nominal, Barometer Riset Akuntansi Dan Manajemen, 7(1),96-110. https://doi.org/10.21831/nominal.v7i1.19363

Ingale, K.K., & Paluri, R.A. (2022). Financial literacy and financial behavior: A bibliometric analysis. Review of Behavioral Finance, 14(1), 130-154.

Kadoya, Y., & Khan, M., (2020). Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude. Sustainability. 12 (9), 3683. Doi: 10.3390/su12093683.

Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and financial behavior, and if so, when? The World Bank Economic Review, 31(3), 611-630.

Khawar, S., & Sarwar, A. (2021). Financial literacy and financial behavior with the mediating effect of family financial socialization in the financial institutions of Lahore, Pakistan. Future Business Journal, 7(1), 1-11.

Leekitchwatana, P. (2022). Research Methods in Education. 12th ed. Mean Service Supply.

Lusardi, A., & Mitchell, O.S. (2011). Financial Literacy and Planning: Implications for Retirement Wellbeing (No. w17078). National Bureau of Economic Research. https://doi.org/10.3386/w17078

Mandell, L., & Klein, L.S. (2009). The impact of financial literacy education on subsequent financial behavior. Journal of Financial Counseling and Planning, 20(1), 15-24.

Mudzingiri, C., Muteba Mwamba, J.W., & Keyser, J.N. (2018). Financial behavior, confidence, risk preferences and financial literacy of university students. Cogent Economics & Finance, 6(1), 1–15. https://doi.org/10.1080/23322039.2018.1512366

Muñoz-Murillo, M., Álvarez-Franco, P.B., & Restrepo-Tobón, D.A. (2020). The role of cognitive abilities on financial literacy: New experimental evidence. Journal of Behavioral and Experimental Economics, 84, 101482.

Mustafa, W.M.W., Islam, M.A., Asyraf, M., Hassan, M.S., Royhan, P., & Rahman, S. (2023). The effects of financial attitudes, financial literacy, and health literacy on sustainable financial retirement planning: The moderating role of the financial advisor. Sustainability, 15(3), 677. https://doi.org/10.3390/su15032677

Nano, D. (2015). The interrelationship between financial attitude, financial behavior, and financial knowledge. International Journal of Business and Technology, 4(1), 72-77. DOI: 10.33107/ijbte.2015.4.1.09.

Nicolini, G., Haupt, M. (2019). The assessment of financial literacy: new evidence from Europe. International Journal of Financial Studies, 7(3), 54. https://doi.org/10.3390/ijfs7030054

Nidar, S.R., & Bestari, S. (2012). Personal financial literacy among university students (case study at Padjadjaran University students, Bandung, Indonesia). World Journal of Social Sciences, 2(4), 162-171.

OECD. (2013). Financial literacy and inclusion: Results of OECD/INFE survey across countries and by gender. Paris: OECD Centre.

Peng, C., She, P.W., & Lin, M.K. (2022). Financial literacy and portfolio diversity in China. Journal of Family and Economic Issues, 43(3), 452-465.

Permana, J.Z., & Lutfi, L. (2022). Financial Literacy, Financial Attitude, and Household Financial Behavior. Jurnal Maksipreneur: Manajemen, Koperasi, dan Entrepreneurship, 12(1), 273-287.

Philippas, N. D., & Avdoulas, C. (2021). Financial literacy and financial well-being among generation-Z university students: Evidence from Greece. In Financial Literacy and Responsible Finance in the FinTech Era (pp. 64-85). Routledge.

Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review, 8(1), 51–60. https://doi.org/10.1177/2319714519826651

Surendar, G., & Sarma, S. (2018). Financial literacy and financial planning among teachers of higher education-a study of critical factors of select variables. International Journal of Pure and Applied Mathematics, 118(18), 1627-1649.

TAN, C.K. (2023). China economic recovery faces 'high degree of uncertainty': IMF. Retrieved from: https://asia.nikkei.com/Economy/China-economic- recovery-faces-high-degree-of-uncertainty-IMF

Tang, M., Liu, X., Feng, Q., Selvarajan, S.K., Baskaran, A., & Yang, C. (2022). Impact of financial literacy on individuals' financial decisions: A comparative analysis of Eastern, Central, and Western Regions in China. Contemporary Chinese Political Economy and Strategic Relations, 8(1), 101-138.

The Financial Consumer Rights Protection Bureau of the People's Bank of China. (2021). The 2021 Consumer Financial Literacy Survey Report was released, and more than 40% of respondents felt heavily indebted. https://new.qq.com/rain/a/20210908A09DAT00

White, K., Park, N., Watkins, K., McCoy, M., & Thomas, M.G. (2019). The relationship between financial knowledge, financial management, and financial self-efficacy among African-American students. Financial Management, and Financial Self-Efficacy Among African-American Students (October 12, 2019).

Wicaksono, A.B., & Nuryana, I. (2020). Pengaruh Sikap Keuangan, Teman Sebaya, dan Kecerdasan Spiritual Melalui Kontrol Diri Terhadap Perilaku Pengelolaan Keuangan. Economic Education Analysis Journal, 9(3), 940–958. https://doi.org/10.15294/eeaj.v9i3.42352.

Willis, Lauren. (2008). Against Financial-Literacy Education. Iowa Law Review. 94 (1), 197-285.

Yong, C.C., Yew, S.Y., & Wee, C.K. (2018). Financial knowledge, attitude and behavior of young working adults in Malaysia. Institutions and Economies, 10(4), 21-48.