Financial Literacy and Its Influence on Financial Decision: A Bibliometric Approach
Keywords:
bibliometric analysis, financial decision, financial literacy, trendsAbstract
Financial literacy is critical in influencing financial decisions, particularly in today's complex financial market where individuals are constantly confronted with a diverse range of financial goods, complex investing possibilities, and ever-changing economic situations. The significance of making informed and wise financial decisions, including budgeting, savings, investments, and retirement planning, cannot be overstated. This prompts a gaining interest in financial literacy and its impact on financial decisions. More researchers are looking into various facets of financial literacy and how it affects individual’s and society’s financial well-being, subsequently paving the way for a better knowledge of this vital topic. Therefore, this study aims to highlight the current research trend on financial literacy influencing financial decisions. It involved a bibliometric analysis of data retrieved from the Scopus database by focusing on keywords related to financial literacy and financial decision-making. A total of 417 relevant documents were obtained for detailed analysis. Several analytical tools were used in this study, including Microsoft Excel for frequency analysis, VOSviewer for data visualization, and Harzing's Publish or Perish for citation metrics and analysis. The results were presented using typical bibliometric indicators, such as publication year, keyword analysis, geographical distribution, authorship, active institutions, and citation analysis. The findings showed a significant increase in financial literacy publications since 2014, highlighting the growing relevance of financial literacy and its broader societal impacts.
References
Agarwal, S., & Mazumder, B. (2021). Financial literacy and savings behavior: Evidence from a randomized experiment in India. Journal of Development Economics, 151, 102645. https://doi: 10.1016/j.jdeveco.2021.102645
Alzahrani, A. A., Al-Khyal, T. A., Daghran Alahmari, A., & Al-Hanawi, M. K. (2023). The financial performance of private hospitals in Saudi Arabia: An investigation into the role of internal control and financial accountability. PLoS ONE, 18(5), e0285813. https://doi.org/10.1371/journal.pone.0285813
Asaad, C. (2015). Financial literacy and financial behavior: Assessing knowledge and confidence. Financial Services Review, 24, 101.
Baihaqqy, M. R. I., Disman, N., Sari, M., & Ikhsan, S. (2020). The effect of financial literacy on the investment decision. Budapest International Research and Critics Institute-Journal (BIRCI Journal), 3(4), 3073-3083. https://doi.org/10.33258/birci.v3i4.1333.
Behrman, J. R., Mitchell, O. S., Soo, C. K., & Bravo, D. (2015). How financial literacy affects household wealth accumulation. American Economic Review, 105(5), 1-6. https://doi: 10.1257/aer.p20151050
Bongomin, G., Munene, J., Ntayi, J., & Malinga, C. (2018). Nexus between financial literacy and financial inclusion. International Journal of Bank Marketing. https://doi.org/10.1108/ijbm-08-2017-0175.
Brown, A., Collins, J. M., Schmeiser, M. D., & Oster, E. (2020). The value of financial education during multiple life stages. Journal of Financial Counseling and Planning, 26(2), 172-186. https://doi.org/10.1891/1052-3073.26.2.172
Bucher-Koenen, T., Lusardi, A., Alessie, R., & Van Rooij, M. (2017). How financially literate are women? An overview and new insights. Journal of Consumer Affairs, 51(2), 255-283. https://doi: 10.1111/joca.12098
Calcagno, R., & Monticone, C. (2015). Financial literacy and the demand for financial advice. Journal of Banking & Finance, 50, 363-380. https://doi: 10.1016/j.jbankfin.2014.01.006
Dewi, V., Febrian, E., Effendi, N., Anwar, M., & Nidar, S. (2020). Financial literacy and its variables: The evidence from Indonesia. Economics & Sociology, 13. https://doi.org/10.14254/2071-789x.2020/13-3/9.
Drexler, A., Fischer, G., & Schoar, A. (2014). Keeping it simple: Financial literacy and rules of thumb. American Economic Journal: Applied Economics, 6(2), 1-31. https://doi: 10.1257/app.6.2.1
Fachrudin, K. R. & Fachrudin, K. A. (2016). The influence of education and experience toward investment decision with moderated by financial literacy. Polish Journal of Management Studies, 14, 51-60. https://doi.org/10.17512/PJMS.2016.14.2.05.
Fernandes, D., Lynch Jr., J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861-1883. https://doi: 10.1287/mnsc.2013.1849
Finke, M. S., Howe, J. S., & Huston, S. J. (2017). Old age and the decline in financial literacy. The Journal of Retirement, 5(2), 53-63. https://doi: 10.3905/jor.2017.5.2.053
Frydman, C., & Camerer, C. F. (2016). The psychology and neuroscience of financial decision making. Trends in Cognitive Sciences, 20(10), 661-675. https://doi: 10.1016/j.tics.2016.07.003
Gale, W. G., & Holmes, T. J. (2021). The macroeconomic effects of COVID-19 and policy responses in Saudi Arabia. International Journal of Health Economics and Management, 21(3), 361-377. https://doi.org/10.1007/s10754-021-09292-7
Grohmann, A. (2018). Financial literacy and financial behavior: Evidence from the emerging Asian middle class. Journal of Asian Economics, 56, 23-38. https://doi: 10.1016/j.asieco.2017.11.002
Grohmann, A., Kouwenberg, R., & Menkhoff, L. (2015). Childhood roots of financial literacy. Journal of Economic Psychology, 51, 114-133. https://doi: 10.1016/j.joep.2015.06.004
Kawamura, T., Mori, T., Motonishi, T., & Ogawa, K. (2020). Is financial literacy dangerous? Financial literacy, behavioral factors, and financial choices of households. FinPlanRN: Consumer Financial Decision-Making. https://doi.org/10.2139/ssrn.3621890.
Klapper, L., & Lusardi, A. (2020). Financial literacy and financial resilience: Evidence from around the world. Brookings Papers on Economic Activity, 2020(2), 1-105. https://doi: 10.1353/eca.2020.0024
Kumar, S., Watung, C., Eunike, J., & Liunata, L. (2017). The influence of financial literacy towards financial behavior and its implication on financial decisions: A survey of President University students in Cikarang-Bekasi. Firm Journal of Management Studies, 2(1).https://doi.org/10.33021/firm.v2i1.158.
Leydesdorff, L., & Vaughn, C. (2006). Co-occurrence matrices and their applications in information science: Extending ACA to the web environment. Journal of the American Society for Information Science and Technology, 57(12), 1616-1628. https://doi.org/10.1002/asi.20377
Lusardi, A. (2014). Financial literacy: Do people know the ABCs of finance? Financial Literacy eJournal. https://doi.org/10.2139/ssrn.2585246.
Mitchell, O. S., & Lusardi, A. (2018). Financial literacy and economic outcomes: Evidence and policy implications. Journal of Retirement, 5(3), 107-114. https://doi.org/10.3905/jor.2018.5.3.107
Robb, C. A., & Woodyard, A. S. (2021). Financial knowledge and financial behavior: The role of gender. Journal of Financial Counseling and Planning, 32(1), 3-16.
Skagerlund, K., Lind, T., Strömbäck, C., Tinghög, G., & Västfjäll, D. (2018). Financial literacy and the role of numeracy–How individuals’ attitude and affinity with numbers influence financial literacy. Frontiers in Psychology, 9, 2211. https://doi: 10.3389/fpsyg.2018.02211
Waltman, L. (2016). A review of the literature on citation impact indicators. Journal of Informetrics, 10(2), 365-391. https://doi.org/10.1016/j.joi.2016.02.007
Xu, Y., & Zia, B. (2018). Financial literacy around the world: An overview of the evidence with practical suggestions for the way forward. World Bank Research Observer, 33(1), 31-57. https://doi.org/10.1093/wbro/lkx008
Xue, R., Gepp, A., O'Neill, T., Stern, S., & Vanstone, B. (2020). Financial literacy and financial strategies: The mediating role of financial concerns. Australian Journal of Management, 46, 437 -465. https://doi.org/10.1177/0312896220940762.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Shuhaimi Samanol, Rosliza Md Zani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
