Explain financial ability and financial literacy from a knowledge perspective and proposing a model of financial capability

Subject Areas : Financial Knowledge of Securities Analysis

maryam  khosravi ¹ (دانشجوی دکتری تخصصی، گروه حسابداری، واحد شهرکرد ، دانشگاه آزاد اسلامی، شهرکرد، ایران)
Bahareh  Banitalebi Dehkordi ² (Assistant of Department of Accounting,Shahrekord Branch, , Islamic Azad University, Shahrekord,Iran)

Received: 2022-01-11 Accepted : 2022-01-11 Published : 2021-11-22

Keywords: financial capability, financial knowledge (literacy), financial models, Phenomenological Approach,

Abstract :

As financial markets become more complex in today's world, terms such as financial capability and financial knowledge (literacy) have recently become widely used in the literature and everyday conversation. However, there are still challenges in explaining the meanings of each word, its dimensions and elements, and how to measure it, and many consider the two words to be the same. In addition, most of the research conducted so far has focused on the term financial literacy and identifying the factors affecting it, and the concept of financial capability (ability) has not been specifically addressed. Therefore, the purpose of this study, while explaining the conceptual differences between the two words, is to provide a structural model regarding the factors affecting the financial ability of individuals from the perspective of experts through a phenomenological approach. This research is based on a library and interpretive method of qualitative research that has examined the views of 12 Iranian financial experts. The results showed that the proposed model of factors affecting the financial ability of individuals including 3 main themes of ability, mental framework and communication, 4 categories of skills, attitudes and general and financial motivations as well as 39 factors are influential.

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