Spending Model under Financial Literacy
Muzafar Hussain Shah, Norzalina Binti Ahmad, Logasvathi Murugiah
Asian Journal of Economics, Business and Accounting · pp. 39–54 · Published 30 Jan 2021
10.9734/ajeba/2021/v21i130338Abstract
Aims: The study attempted to assess how family background, and peer role affect the spending decisions of working youth in Pakistan. Current study also tested effect of financial literacy as mediator between relationship of peer role and family back ground with spending decisions of working youth. Study Design: Cross sectional survey research (Quantitative) Place and Duration of Study: Different organization in Pakistan, between May- September-2019 Methodology: Working youth among different organizations with total of 309 responses were usable out of total sample 574from Pakistan through stratified random sampling Structural equation modeling was applied through Smart PLS3. Results: The study found that the insignificant effect of peer role on spending, and significant effect on financial literacy. On other side family background shown insignificant effect on spending decisions but significant effect on financial literacy. Furthermore this study also found significant effect of financial literacy on spending decisions. Additionally this research also shown significant mediating effect of family background and peer role on spending decisions through financial literacy. Conclusion: Findings of this study shaded the light that how family background, peer role have influenced spending decisions under umbrella of relative income hypothesis and life cycle hypothesis, directly and indirectly through mediation by financial literacy. Further policy makers could design policies and arranging training workshops for financial literacy awareness among working youth.
References (49)
- 1 Structural equation modeling in practice: A review and recommended two-step approach. [DOI]
- 2 A new criterion for assessing discriminant validity in variance-based structural equation modeling [DOI]
- 3 Principles and Practice of Structural Equation Modeling
- 4 Constructing validity: Basic issues in objective scale development. [DOI]
- 5 The Economic Importance of Financial Literacy: Theory and Evidence [DOI]
- 6 Financial literacy around the world: an overview [DOI]
- 7 Consumer Socialization of Children: A Retrospective Look At Twenty‐Five Years of Research [DOI]
- 8 Where is the child's environment? A group socialization theory of development. [DOI]
- 9 Household Financial Management: The Connection between Knowledge and Behavior
- 10 Trust and Electronic Government Success: An Empirical Study [DOI]
- 11 Financial Literacy, Financial Education, and Economic Outcomes [DOI]
- 12 Financial Socialization of First-year College Students: The Roles of Parents, Work, and Education [DOI]
- 13 The Peer Group as a Context for the Development of Young Adolescent Motivation and Achievement [DOI]
- 14 Understanding Mechanisms Underlying Peer Effects: Evidence From a Field Experiment on Financial Decisions [DOI]
- 15 Does self-control predict financial behavior and financial well-being? [DOI]
- 16 Television and Interpersonal Influences on Adolescent Consumer Learning [DOI]
- 17 Financial education and financial satisfaction [DOI]
- 18 Financial literacy among youth [DOI]
- 19 Antecedents and Consequences of Risky Credit Behavior among College Students: Application and Extension of the Theory of Planned Behavior [DOI]
- 20 Development of a financial literacy model for university students [DOI]
- 21 Childhood Roots of Financial Literacy [DOI]
- 22 Financial literacy and the role of numeracy–How individuals’ attitude and affinity with numbers influence financial literacy [DOI]
- 23 Adolescents’ financial literacy: The role of financial socialization agents, financial experiences, and money attitudes in shaping financial literacy among South Korean youth [DOI]
- 24 The Acquisition of Family Financial Roles and Responsibilities [DOI]
- 25 The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable [DOI]
- 26 Financial Literacy among Working Young in Urban India [DOI]
- 27 Financial literacy and the cost of borrowing [DOI]
- 28 Determinantes da Alfabetização Financeira: Análise da Influência de Variáveis Socioeconômicas e Demográficas [DOI]
- 29 In good company: The influence of peers on industry engagement by academic scientists [DOI]
- 30 Review of Family Financial Decision Making: Suggestions for Future Research and Implications for Financial Education [DOI]
- 31 Financial Identity‐Processing Styles Among Young Adults: A Longitudinal Study of Socialization Factors and Consequences for Financial Capabilities [DOI]
- 32 The Effect of Family, Peer, Behavior, Saving and Spending Behavior on Financial Literacy among Young Generations [DOI]
- 33 The Role of National Culture in Financial Literacy: Cross-Country Evidence [DOI]
- 34 Explanation of normative declines in parents' knowledge about their adolescent children [DOI]
- 35 Peer effects in financial decision-making [DOI]
- 36 Predicting Spending Behavior Using Socio-mobile Features [DOI]
- 37 Importance of financial education in making informed decision on spending [DOI]
- 38 Impact of Financial Literacy on Saving-Investment Behavior of Working Women in the Developing Countries
- 39 “Because My Father Told Me To”: Exploratory Insights into Parental Influence on the Retirement Savings Behavior of Adult Children [DOI]
- 40 Risk sharing, siblings, and household equity investment: evidence from urban China [DOI]
- 41 Impact of Financial Literacy and Parental Socialization on the Saving Behavior of University Level Students [DOI]
- 42 Links between nonshared friendship experiences and adolescent siblings' differences in aspirations [DOI]
- 43 Of Friends and Family: How Do Peers Affect the Development of Intergenerational Influences?
- 44 Spend as I say, not as I do: Children, families and household consumption in different socio‐economic contexts [DOI]
- 45 FACTORS AFFECTING THE SPENDING BEHAVIOR OF COLLEGE STUDENTS [DOI]
- 46 Spending & Saving Habits of Youth in the City of Aurangabad [DOI]
- 47 Franco Modigliani and the Life Cycle Theory of Consumption [DOI]
- 48 Evaluating Structural Equation Models with Unobservable Variables and Measurement Error [DOI]
- 49 The Spending Pattern among the Youth in Lagos, Nigeria [DOI]
Cited by 0
No indexed citations yet.
Related research
- The Role of Financial Education in Preventing Credit Card Debt: A Framework for Schools and Communities — shares topic coverage
- Assessing Financial Literacy among Teachers in Flora District, Philippines — shares topic coverage
- Legal Empowerment and Financial Literacy: A Transformative Framework for Socioeconomic Equity in Underserved Communities — shares topic coverage
- Effect of Behavioral Biases and Financial Literacy on Investors’ Investment Decision-making in Kerala, India — shares topic coverage
- Financial Knowledge, Saving Habits and Spending Habits among Fourth Year Students in the University of Eastern Philippines College of Education — shares topic coverage
Article metrics
Real usage data collected on this platform.
7
Page views
0
PDF downloads
9
Outbound clicks
0
Citations
Views over time
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
Traffic sources
Referring site, by host.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.