Financial Literacy’s Importance in Household Finance Decision-Making

DOI

10.2991/978-2-494069-49-7_162How to use a DOI?

Keywords

Household Finance; Financial Literacy; Life Insurance; Financial Decision-Making; Consumer Finance

Abstract

Understanding financial operations originates with the household. Prior to actually accessing and participating in the market and financial system, critical decisions are made using this source. Finance is still a very specialized field in its existing iteration. Households’ function in the financial system, which is a source of household financial complexity, has not gotten the attention it deserves. We will explore how the relevance of financial literacy is related to the knowledge, skills, and beliefs of husband and wife and their consensus in making decisions about life insurance participation. Separate in-depth interviews are conducted by married couples, wives separately, and husbands collectively. The main topic we discuss is how to perform cognitive mapping of data derived from interviews with members of various ethnicities and cultures. There are married couples who, despite having low levels of financial literacy (financial knowledge and skills), play a more decisive role in household financial decision-making because their partners do not want to take financial responsibility because they are doubtful of their own abilities, so they accept their partners’ decisions more out of necessity. This research project has implications for how financial knowledge is regarded, and how income and consumption are allocated. Financial knowledge and skills provide individuals and couples confidence in household financial matters, financial decision-making, and asset allocation, according to findings. Keywords: Write 3-6 keywords separated by semicolon.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Goso Goso
AU  - Syamsu Alam
AU  - Muhammad Yunus Amar
AU  - Musran Munizu
PY  - 2022
DA  - 2022/12/29
TI  - Financial Literacy’s Importance in Household Finance Decision-Making
BT  - Proceedings of the 3rd Borobudur International Symposium on Humanities and Social Science 2021 (BIS-HSS 2021)
PB  - Atlantis Press
SP  - 966
EP  - 971
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-49-7_162
DO  - 10.2991/978-2-494069-49-7_162
ID  - Goso2022
ER  -