BRIEF RESEARCH REPORT

published: 28 September 2021

doi: 10.3389/fpsyg.2021.751709

Impact of Internet Integrated

Financial Education on Students’
Financial Awareness and Financial
Behavior
Hong-Cheng Liu and Jie-Shin Lin *

Department of Public Policy and Management, I-Shou University, Kaohsiung, Taiwan

In daily life, most people engage in money-related behavior. Adequate financial knowledge
is required to successfully manage tasks, such as daily expenditure and the transformation
of assets or debts, small, or large. However, the extent of financial knowledge may vary
between individuals. With inadequate financial knowledge, people may easily fall into
financial difficulties without having sufficient knowledge to redress them. A total of 217
Edited by: students from departments of finance in universities in Fujian completed an 18-week
Mert Bastas, educational course delivered via the Internet on integrated financial education (5 h per
Near East University, Cyprus
week for a total of 90 h). The conclusions were as follows: (1) The Internet can be used
Reviewed by:
Didem Aydindag, to provide education on making ends meet, cutting costs, and increasing profits. It is
University of Kyrenia, Cyprus suitable for beginner students and new graduates who are rapidly accumulating money
Sukru Umarbeyli,
management experience. (2) Knowledge provided in the course includes the causes of
University of Mediterranean Karpasia,
Cyprus investment, comprehensive changes in the market, unexpected risks, and wrong decision-
*Correspondence: making. As such, education provided through the Internet can assist in the teaching of
Jie-Shin Lin money management and investment. (3) Providing teaching on integrated financial
[email protected]
education through the Internet avoids the pitfalls of getting lost in the real-world investment
Specialty section: market. We expected to cultivate students’ finance-related knowledge, skills, and attitudes
This article was submitted to through internalization of the financial literacy of money management.
Educational Psychology,
a section of the journal Keywords: internet, financial education, financial awareness, financial behavior, knowledge experience
Frontiers in Psychology

Received: 01 August 2021

Accepted: 31 August 2021
Published: 28 September 2021
INTRODUCTION
Citation: Equal importance should be given to financial education as already given to language, mathematics,
Liu H-C and Lin J-S (2021) Impact of
sciences, and humanities. Money-related behavior is for most an essential component of life,
Internet Integrated Financial
Education on Students’ Financial
ranging from the management of daily expenses to selling and buying large financial assets.
Awareness and Financial Behavior. Management of both assets and debts requires financial knowledge, but for some this knowledge
Front. Psychol. 12:751709. may be inadequate. When financial knowledge is inadequate, people can easily fall into financial
doi: 10.3389/fpsyg.2021.751709 difficulties without the knowledge or insight required to address these difficulties.

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Liu and Lin Financial Awareness and Financial Behavior

A key factor of poverty is having imbalanced finances or financial decisions, including those relating to mortgage loans,
“not making ends meet.” To solve this problem, financial the planning of loan repayments, the financial terms required
education can be used to guide individuals in acquiring wealth for retirement, property mortgages, chattel mortgages, and
through financial management, with the central idea of “creation.” interest payments, and the repayment of principal.
Financial pressure caused by excessive consumption could Looking at the financial socialization of college freshmen,
be reduced by adjusting the concepts of income and expenditure Moreno-herrero et al. (2018) analyzed the role of parents, past
through the consideration of items and labor. Surplus could working experiences, and learning experiences in financial
be directed toward suitable investment using risk control to education at school with structural equation modeling. The
increase income and to gradually increase non-labor income researchers found that three factors could predict financial
through such investment tools. In the early stages, this could behavior. Parents’ past working experiences together with the
be the income source for the family who can gradually achieve quality of their relationship and communication with their
financial freedom and alleviate poverty by using their non-labor children, and having learning experience in financial education
income to pay all their expenses. People stress about financial at school, presented the greatest benefits.
freedom because the value would be enhanced when they do Brent and Ward (2018) proposed that inadequate financial
not directly work for money. behavior would induce people to enhance their financial
In the current study, the Internet was applied to study the knowledge. Therefore, the effectiveness of financial education
correlations between financial education, student financial depends on previous financial behavior and insight into that
cognition, and financial behavior. We expected to cultivate financial behavior. Granić and Marangunić (2019) indicate that
and change students’ existing concepts of income and expenditure, current research stresses the effect of financial education on
establish a better understanding of assets, debts, and cash flow, financial decisions and the poor population in developing
adjust students’ personal financial structures, and reinforce countries based on random control. Their results reveal that
awareness of risk management in investment. effective financial education leads to improvement in
financial behavior.

LITERATURE REVIEW
Scherer et al. (2019) discussed different teaching methods for HYPOTHESIS
delivering financial education and the effectiveness of these.
From the above literature, the following hypotheses were inferred.
He showed that financial education can positively enhance
students’ financial knowledge. An interview with teachers after
completing a course also revealed an important role for the H1: There are positive relationships between financial
cognition of financial education and enhancement of the education and financial cognition.
understanding of the financial education curriculum. Gentina H1-0: Financial education does not show a significant
et al. (2018) demonstrated that people with financial education and positive relationship with financial cognition.
can show a final wealth difference up to 30–40%. In other H1-1: Financial education reveals a remarkable and
words, an individual can acquire short-term and long-term positive relationship with financial cognition.
real gains through financial education. H2: There will be positive relationships between financial
Another study demonstrated that people without financial cognition and financial behavior.
education or training are more likely to lose in the investment H2-0: Financial cognition does not appear a notable and
market. It is common for people lacking the basis of financial positive relationship with financial behavior.
education and literacy to accumulate many experiences of failed H2-1: Financial cognition reveals a significant and
investment, including high borrowing costs or increasing positive relationship with financial behavior.
unnecessary expenses, rather than cultivating long-term and H3: There will be a positive relationship between
stable investment habits. financial education and financial behavior.
Hanson and Olson (2018) indicated that financial cognition H3-0: Financial education does not present a notable
broadly affects financial behavior, and as such the enhancement and positive relationship with financial behavior.
of financial cognition provides significant improvements in H3-1: Financial education shows a remarkable and
personal financial management. Taking the example of pension positive relationship with financial behavior.
planning, financial cognition has been found to be an important
factor in people engaging in financial behavior and experiencing
benefits from financial services. In particular, Hert et al. (2012) MATERIALS AND METHODS
stated people living in urban areas can acquire various saving
products, financing products, and financial loan channels. Operational Definitions
Nevertheless, the middle classes tend not to effectively use Financial Education
such financial services, primarily due to a lack of financial Chou and Chan (2018) proposed that financial education
cognition. Moreno-herrero et al. (2018) revealed that modern consists of three dimensions: degree of awareness, knowledge
people’s financial behavior does not lead to the most appropriate experience, and ability practice.

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Liu and Lin Financial Awareness and Financial Behavior

Financial Cognition TABLE 1 | Linear structural model analysis.

Lusardi (2019) proposed that financial cognition contains the
Evaluation Parameter/Evaluation Result t
following dimensions: cutting costs and increasing profits, item standard
investment decisions, and good habits.
Degree of
0.714 9.62**
awareness
Financial Behavior Financial Knowledge 0.736 11.16**
Miller and Xu (2019) proposed that financial behavior should education experience
be measured with a single dimension. Ability
0.757 12.62**
practice
Preliminary fit Cutting costs
Research Sample and Questionnaire and
0.722 10.43**
A total of 360 questionnaires were distributed to students in increasing
Financial profits
departments of finance in universities in Fujian. A total of cognition Investment
265 valid copies were returned, representing a retrieval Decision- 0.743 11.87**
rate of 74%. making
Good habits 0.762 14.58**
Financial education→financial
Reliability and Validity Testing cognition
0.846 31.56**

Validity refers to the extent that a measurement tool measures Internal fit
Financial cognition → financial
0.875 47.15**
behavior
what the researcher really wants to measure. The assessment
Financial education → financial
of validity generally comprises the evaluation of content validity, behavior
0.825 23.77**
criterion-related validity, and construct validity. The questionnaire X2/df 1.637
items used in this study were taken from those used in previous Overall fit
GFI 0.964
domestic and international studies, suggesting that the AGFI 0.931
RMR 0.005
questionnaire holds certain content validity.
The overall structural causal relationship results revealed **
p < 0.01.
that the overall model fit reached a reasonable range in
demonstrating favorable convergent validity and predictive
validity. Item-to-total correlation coefficients were used to test TABLE 2 | Hypothesis tests.
the construct validity of the questionnaire. The correlation
coefficients were all higher than 0.7, revealing a certain degree Research Correlation Empirical p Result
of construct validity. hypothesis result
To further understand the reliability and validity of the
H1 + 0.851 p < 0.01 Supported
questionnaire, Cronbach’s αs were calculated. As higher αs H2 + 0.824 p < 0.01 Supported
reflect better reliability, the measured Cronbach’s α in this H3 + 0.836 p < 0.01 Supported
study of 0.75–0.90 reflects acceptable to excellent reliability.

correlated with financial behavior (0.875, p < 0.01), and financial

RESULTS education was significantly and positively correlated with financial
behavior (0.825, p < 0.01). Therefore, H1, H2, and H3
LISREL Indicator were supported.
The research data are presented in Table 1. The preliminary The overall model fit standards, χ2/df = 1.637, were smaller
fit, internal fit, and overall fit of the model are explained than the standard 3, and RMR = 0.005 revealed the proper
as follows. results of χ2/df and RMR. Furthermore, Chi-square is sensitive
Table 1 shows that the three dimensions of financial to sample size, and therefore, it is not suitable for directly
education (degree of awareness, knowledge experience, and judging the model fit. However, the overall model fit standards
ability practice) could significantly explain financial education (GFI = 0.964 and AGFI = 0.931) reached the standard 0.9 (the
(t > 1.96, p < 0.05). The three dimensions of financial cognition closer GFI and AGFI are to 1, the better the model fit) such
(cutting costs and increasing profits, investment decision- that the model presented favorable fit indices.
making, and good habits) could remarkably explain financial The research results in Table 2 reveal a notable and
cognition (t > 1.96, p < 0.05), and the single factor of financial positive relationship between financial education and
behavior notably explained financial behavior (t > 1.96, financial cognition (0.846**) that H1-0 is rejected and
p < 0.05). Thus, the overall model presented a good H1-1 is accepted. H1 is therefore supported. Financial
preliminary fit. cognition appears a significant and positive relationship
In terms of internal fit, financial education was positively with financial behavior (0.875**) that H2-0 is rejected
and significantly correlated with financial cognition (0.846, and H2-1 is accepted. Apparently, H2 is supported.
p < 0.01). Financial cognition was positively and significantly Financial education reveals a positive relationship with

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Liu and Lin Financial Awareness and Financial Behavior

financial behavior (0.825**) that H3-0 is rejected and further application to daily life so as to reduce pressure of
H3-1 is accepted. Accordingly, H3 is supported. making financial reports. In other words, people who have
obtained a basic financial education may more readily
comprehend financial cognition and not get lost in their
DISCUSSION financial behavior. Applying money and/or capital to financial
investment with inadequate financial knowledge or financial
Financial education can be provided by teachers or professional cognition would lead to difficulty in controlling the risks
teachers through a combination of systematic teaching and in the investment market and increase the likelihood of
the application of materials, and teaching aids to advance money loss. Although financial education is emphasized in
education, knowledge, and skills in using money or resources. various industries, the concept of financial education is
Nowadays, money is not referred to as the representation currently still only theoretical. The provision of a simulated
of money in general but is one of the value exchange tools. financial management model with the characteristics of
Stocks, funds, futures, insurance, automobiles, jewels, real educational entertainment for students learning about financial
estate, and enterprises are valuable; they are the extension statements and obtaining related financial knowledge and
of commodities. Financial education, therefore, is the education skills until now has been scarce. Financial education cultivates
of exchange ability. By schools planning school-wide or students’ educational spirit of building the ability of digital
teachers designing class financial education activities, the management of financial structure, carefully planning the
design of integrating integrated curricula into teaching or adjustment of income and expenditure in financial statements,
applying flexible time to the practice could enhance the and authentically experiencing the situations of living within
extension of financial education curricula and avoid time the means and cutting costs and increasing profits. It is the
shortage. Besides, Fox et al. (2005) mentioned that well education suitable for beginners or fresh graduates rapidly
applying teaching resource websites for financial education accumulating financial experiences.
could help teachers to effectively promote financial education Learning with the assistance of tutors and teachers would
and financial literacy. Insisting on the idea of resource sharing present better learning effectiveness. The systematic cultivation
to establish the material sharing platform in schools, the of teachers could rapidly establish improved concepts of money,
teaching content could be expanded and updated at any enhance national financial cognition and ability, change financial
time to enrich teachers’ financial literacy. Moreover, the behavior and enhance investment effectiveness, reduce the
teaching content should be combined with students’ real-life wealth gap caused by inadequate knowledge, and further move
experience to cultivate students’ financial behavior and stress toward the goals of national financial health and
on the practicality in life to induce students’ learning interests average prosperity.
and teach students financial knowledge and financial behavior.
Fernandes et al. (2014) in his correlational studies that
measure financial literacy finds stronger associations with DATA AVAILABILITY STATEMENT
financial behaviors. Teachers, on the other hand, should
well-utilize various channels as well as actively and positively The original contributions presented in the study are included
enhance personal financial education knowledge and skills. in the article/supplementary material, further inquiries can
In addition to study activities conducted by education-related be directed to the corresponding author.
units, teachers could participate in activities help by private
groups and banks, read books, newspaper, and magazines,
browse the Internet, and converse with professional peers ETHICS STATEMENT
to absorb financial knowledge and enhance personal
financial literacy. The research protocol was approved by the Ethical Committee
of the I-Shou University, Taiwan. Written informed consent
was obtained from all the participants.
CONCLUSION
The current findings show that financial education can enhance AUTHOR CONTRIBUTIONS
people’s financial knowledge, improve people’s ability to
comprehend investment markets, teach people how to diagnose H-CL performed the initial analyses and wrote the manuscript.
personal financial health, and cultivate a lifelong interest in J-SL assisted in the data collection and data analysis.
the study of money. Financial statement is the most important All authors contributed to the article and approved the
issue in financial management. People generally agree with submitted version.
the importance of financial reports, but most people would
give up due to the dullness and complication. Financial
education creates personal financial statement covering balance ACKNOWLEDGMENTS
sheet, income statement, and simple cash flow statement for
people learning the process to make financial reports for The authors thank the reviewers for their valuable comments.

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Liu and Lin Financial Awareness and Financial Behavior

Miller, D., and Xu, X. (2019). MBA CEOs, short-term management and
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