This study asks whether investors learn differently from gains versus losses, whether learning is better or worse when people are actively investing in a security or passively observing its payoffs, and whether there are personal characteristics that drive learning performance. Experimental evidence shows that the ability to learn from financial information is worse in the loss domain, especial...

this paper explores the effectiveness of financial literacy programs. it further seeks to establish the relationship between financial literacy and certain demographic characteristics. this study adopted a correlational research design as the framework to examine the relationship between variables without determining cause and effect. data were randomly collected from 235 petty traders in kumas...

Is financial literacy a substitute or complement for financial advice? We analyze the decision by consumers to seek financial advice in the form of credit counseling. Credit counseling is an important component of the consumer credit sector for consumers facing debt problems. Our analysis accounts for the endogeneity of an individual’s financial situation to financial literacy, and the endogene...

BACKGROUND Both financial literacy (managing personal finances) and health literacy (managing personal health) become increasingly important for older adults, potentially impacting their quality of life. Resources in these constructs of literacy tend to be distinct, although the skills and decision-making involved overlap as financial issues impact healthcare choices. Thus the primary purpose o...

Is financial literacy a substitute or complement for financial advice? We analyze the decision by consumers to seek financial advice in the form of credit counseling. Credit counseling is an important component of the consumer credit sector for consumers facing debt problems. Our analysis accounts for the endogeneity of an individual’s financial situation to financial literacy, and the endogene...

Based on the information gathered mutual fund trades executed between 1998 and 2017 by 31,513 individual investor clients of a major Portuguese bank, we study relationship disposition effect, financial literacy trading experience. We find that investors exhibit strong effect. The tendency to hold losers is partially offset with literacy: university degree reduces propensity loser funds, in addi...

This paper explores the effectiveness of financial literacy programs. It further seeks to establish the relationship between financial literacy and certain demographic characteristics. This study adopted a correlational research design as the framework to examine the relationship between variables without determining cause and effect. Data were randomly collected from 235 petty traders in Kumas...

This study aim to determine financial literacy, risk tolerance, and socialization agents effect/influence on stock investment decisions in the millennial generation. The research was conducted by distributing questionnaires 400 generation investors Indonesia. data analysis method Structural Equation Modeling (SEM) using SmartPLS 3.2.7 program. results show that literacy has a significant effect...

This article formalizes investor rationality and irrationality, exuberance and apprehension, to consider the implications of belief formation for the fragility of an economy’s financial structure. The model presented generates a financial structure with portfolio linkages that make it susceptible to contagious financial crises, despite the absence of coordination failures. Investors forecast th...