Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /var/www/www-root/data/www/modecon.mnau.edu.ua/wp-content/plugins/qtranslate-x/qtranslate_frontend.php on line 497
{"id":18936,"date":"2024-04-04T10:09:34","date_gmt":"2024-04-04T07:09:34","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=18936"},"modified":"2024-04-04T10:09:34","modified_gmt":"2024-04-04T07:09:34","slug":"the-impact-of-financial-literacy","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-impact-of-financial-literacy\/","title":{"rendered":"Nunes P., Sytnychenko K. The Impact of Financial Literacy on Perceiving The Need to Create an Emergency Fund"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: D14
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-09<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Pedro Nunes,<\/strong> PhD in Economic Analysis and Business Strategy, Instituto Superior de Administra\u00e7\u00e3o e L\u00ednguas, Leiria, Portugal<\/p>\n

ORCID ID:<\/strong> 0000-0001-7364-1202<\/a>
\ne-mail: <\/strong>pedronunes82@gmail.com<\/a><\/p>\n

Karina Sytnychenko,<\/strong> master of Finance of the Faculty of Economics Taras Shevchenko National University Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-3988-972X<\/a>
\ne-mail: <\/strong>sitnichenkoo@gmail.com<\/a><\/p>\n

<\/h2>\n

The Impact of Financial Literacy on Perceiving The Need to Create an Emergency Fund<\/strong><\/h2>\n

\u00a0\u00a0<\/strong><\/p>\n

Abstract. Introduction<\/strong>. This study examines the intersection of financial literacy and emergency fund preparedness, with a focus on adhering to personal finance guidelines during turbulent economic times.<\/p>\n

Purpose.<\/strong> The primary objective is to identify factors that influence households’ perceptions of emergency funds. The study examines the impact of financial literacy on individuals’ perceived need for emergency funds, addressing gaps in the literature and contributing to interventions to improve financial well-being.<\/p>\n

Results.<\/strong> The findings highlighted the core dimensions of financial literacy and addressed the lack of a universally accepted definition. Five key dimensions were identified: knowledge of financial concepts, financial communication skills, ability to manage personal funds, ability to make wise financial decisions, and confidence to effectively plan for future financial needs by establishing an emergency fund. A notable discrepancy between individuals’ financial knowledge and confidence is demonstrated, underscoring the need for interventions that address both. The study highlights the importance of bridging the knowledge gap and addressing subjective perceptions for overall financial well-being. Demographic nuances indicate different levels of preparedness for an emergency fund among different groups, calling for tailored financial education initiatives. Recommendations include longitudinal studies, comparative analyses across socio-economic contexts, and evaluations of the effectiveness of financial literacy interventions.<\/p>\n

Conclusions.<\/strong> Fostering robust financial literacy emerges not only as a means to navigate financial complexities with different strategies, including the establishment of emergency funds, but also as a transformative force for achieving individual financial prosperity, shaping interventions for financial well-being.<\/p>\n

Keywords:<\/strong> financial literacy; financial planning; emergency funding; financial decision-making; emergency fund allocation.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Babiarz, P. & Robb, C. A. (2013). Financial Literacy and Emergency Saving. Journal of Family and Economic Issues<\/em>, 35(1), 40- URL: https:\/\/doi.org\/10.1007\/s10834-013-9369-9.<\/li>\n
  2. Dwiastanti, A. (2015). Financial Literacy as the Foundation for Individual Financial Behavior. Journal of Education and Practice<\/em>, 6(33).<\/li>\n
  3. Ghribi, A. (2014, June 23). One in four Americans has no emergency savings. The Wall Street Journal<\/em>. URL: https:\/\/www.wsj.com\/articles\/BL-NB-1467?responsive=y.<\/li>\n
  4. Gillespie, L. Bankrate\u2019s annual emergency fund report. Bankrate<\/em>. URL: https:\/\/www.bankrate.com\/banking\/savings\/emergency-savings-report\/.<\/li>\n
  5. Jelley, H. (1958). A Measurement and Interpretation of Money Management Understandings of Twelfth-Grade Students<\/em>. [Doctoral dissertation, University of Cincinnati].<\/li>\n
  6. The Latin American Council of Management Schools \u2013 CLADEA. (2019). The Evolution of the Financial Literacy Concept: A Literature Review<\/em>. https:\/\/cladea.org\/wp-content\/uploads\/2021\/12\/CLADEA2019_paper_415.pdf<\/li>\n
  7. Lee, S. T. & Hanna, S. D. (2018). The effect of financial literacy on Emergency Fund Adequacy. SSRN Electronic Journal<\/em>. https:\/\/doi.org\/10.2139\/ssrn.3258056.<\/li>\n
  8. Lee, S. T. & Hanna, S. D. (2022). What, me worry? Financial knowledge overconfidence and the perception of emergency fund needs. Journal of Financial Counseling and Planning<\/em>, 33(1), 140-155. https:\/\/doi.org\/10.1891\/jfcp-2021-0045.<\/li>\n
  9. Morgan, E. (2023, October 26). Emergency cash immediately for bad credit in 2023. Fit My Money<\/em>. https:\/\/fitmymoney.com\/emergency-money\/.<\/li>\n
  10. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs<\/em>, 44(2), 276-295. https:\/\/doi.org\/10.1111\/j.1745-6606.2010.01169.x.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 10 February 2024<\/p>\n

    \"nunes.pdf\"<\/div>
    nunes.pdf<\/div><\/div>
    <\/div>
    <\/div>
    Size: <\/span>0,28<\/span><\/div>
    Download Now!<\/a><\/span>596<\/span> Downloads<\/span><\/span><\/div><\/div>
    <\/div>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n
    \n

    How to quote this article?<\/p>\n<\/td>\n<\/tr>\n

    Nunes P., Sytnychenko K. (2024). The Impact of Financial Literacy on Perceiving The Need to Create an Emergency Fund. Modern Economics, 43(2024), 66-72. DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-09.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
    <\/div>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<< Back to contents<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: D14 DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-09 [\/vc_column_text][vc_column_text]Pedro Nunes, PhD in Economic Analysis and Business Strategy, Instituto Superior de Administra\u00e7\u00e3o e L\u00ednguas, Leiria, Portugal ORCID ID: 0000-0001-7364-1202 e-mail: pedronunes82@gmail.com Karina Sytnychenko, master of Finance of the Faculty of Economics Taras Shevchenko National University Kyiv, Ukraine ORCID ID: 0000-0002-3988-972X e-mail: sitnichenkoo@gmail.com The Impact of Financial Literacy on
    Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[207],"tags":[208],"class_list":["post-18936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-43-2024","tag-43-2024"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/18936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=18936"}],"version-history":[{"count":0,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/18936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=18936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=18936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=18936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}