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A Theoretical Framework For FL

Financial literacy was first defined in 1992 as "the capacity to make informed judgments and take effective decisions about the use and management of money." Financial literacy is a basic requirement to avoid financial difficulties, which can be caused not only by low income but also by financial mismanagement. It is a set of knowledge, attitudes, and behaviors that allows people to make smart financial decisions and achieve financial well-being. Financial literacy is the ability to make well-informed financial decisions that will productively impact both current and future income.

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1K views1 page

A Theoretical Framework For FL

Financial literacy was first defined in 1992 as "the capacity to make informed judgments and take effective decisions about the use and management of money." Financial literacy is a basic requirement to avoid financial difficulties, which can be caused not only by low income but also by financial mismanagement. It is a set of knowledge, attitudes, and behaviors that allows people to make smart financial decisions and achieve financial well-being. Financial literacy is the ability to make well-informed financial decisions that will productively impact both current and future income.

Uploaded by

Metchie Navarro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
  • A Theoretical Framework for Financial Literacy: Discusses the origins, definition, importance, and impacts of financial literacy as commissioned by NatWest Bank for NFEE, underscoring its necessity for economic decision-making and management.

A theoretical framework for financial literacy – IV

The financial literacy was first used in 1992 in a research commissioned by NatWest
Bank for the National Foundation for Educational Research (NFER), which defined it as
"the capacity to make informed judgments and take effective decisions about the use
and management of money." (Noctor, Stoney, Stradling, 1992). Financial literacy is a
basic requirement for everyone who wants to avoid financial difficulties. Financial
hardship is not just caused by a lack of money (poor income); it may also be
caused by financial management errors (mismanagement), such as credit card
usage and a lack of financial planning. Financial difficulties can lead to anxiety and
low self-esteem . Financial literacy is a set of knowledge, attitudes, and behaviors
that enable people to make smart financial decisions and, as a matter of fact,
attain financial well-being. A variety of bias beliefs influence how people think and
make decisions. According to Noctor et al. (1992), financial literacy is defined as the
capacity to make well-informed decisions and make productive financial decisions. In
addition According to Bernheim and Garrett (2003), Financial literacy is a specific
element of economic literacy that is linked to the capacity to assure income, move on
the labor market, make decisions about one's own payments, and understand the
potential repercussions of one's own decisions on present and future income.

[Link]
nancial_literacy_and_financial_education

[Link]
THEORY_TO_PRACTICE

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