The link between financial attitudes and consumer financial market behaviour is well documented. However, little is known about the role of financial knowledge and skills—the main components of the ...financial literacy construct—in shaping debt attitudes. This link is especially absent from the gender perspective. This study focuses on consumer debt literacy and debt attitudes. A representative sample of adult Poles (N = 1,004) was participated in a computer‐assisted telephone interview. Latent class analysis was employed to reveal their debt attitudes, and subsequently, links between debt literacy and debt attitudes were studied with multinomial regression models. The results show that respondents in Poland can be grouped into five classes exhibiting different attitude profiles. The structure of debt attitudes is complex and differs from a simple unidimensional pro‐debt/ anti‐debt construct. Although this study did not find significant gender differences either in the conceptualization of debt attitudes or in their drivers, the results showed that in all but one class, consumer attitudes are strongly linked to either debt knowledge or debt skills or to both. Debt skills were revealed to be a particularly strong predictor of consumer debt attitudes.
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BFBNIB, FZAB, GIS, IJS, IZUM, KILJ, NLZOH, NUK, OILJ, PILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
Debt literacy has been considered to be a critical competence of modern societies since the recent
global financial crisis. Debt-literate individuals are less prone to financial abuse and perform ...better
in terms of credit management. Currently, debt-related information and knowledge are widely
accessible through social networking sites (SNS), such as Facebook. However, not all SNS users have
equal access to debt-related resources, and, consequently, they reach different scores in debt literacy
tests. This study examines relational factors (resources) behind the debt literacy of Facebook users
(N = 1,055) in Poland by applying the Resource Generator tool built into the online questionnaire.
This quantitative instrument helps to diagnose resources that are embedded and mobilised (social
capital) from personal networks made up of kin, friends and acquaintances. We found that users with
more social capital, that is, better access to resources, perform better in debt literacy tests. Moreover,
weak ties (acquaintances) appear to be good sources of debt-related information and knowledge
that have positive impact on debt literacy scores.
Literature shows that parental financial socialisation plays an important role in attaining financial literacy as well as in shaping sustainable financial behaviours and that both translate into ...increased well-being indicators and financial security on micro- and macroeconomic levels. However, debt literacy and debt behaviour seem to be unique. Very little is known about the childhood financial socialisation process through which adults’ sustainable debt behaviour is shaped and how debt behaviour may affect well-being. This study tests a hierarchical model of childhood financial socialisation consisting of five levels: the anticipatory parental socialisation, and later life financial learning outcomes (particularly, debt literacy levels), financial attitudes, debt behaviour, and well-being. Using data collected from a purposive sample of young adult Poles (N = 600) during the period from 10 to 13 November 2018 and employing structural equation modelling, we have found evidence confirming the hierarchical relationship of literacy–attitude–behaviour. Our data do not support, however, either the hypothesised positive relationship between parental socialisation and objectively measured debt literacy or the assumed relationships between debt behaviour and well-being indicators. We posit that country-specific factors related to generational differences entailed by system-wide transition and the specificity of debt behaviour, respectively, are key for explaining these empirical deviations from the assumed conceptual framework. Finally, we found no significant differences between the models estimated separately for maternally conditioned and paternally conditioned respondents.
The article presents empirical evidence for a significant role of stated credit purpose for the level of interest rates paid by the end users of non‐mortgage credit (households). Data for the ...analysis was drawn from two waves of the Household Finance and Consumption Survey. The results of median regression show that, with the exception of credit for consolidation of other debts, remaining credit purposes were associated with lower interest rates compared to the interest rates of credit for car purchases. Especially low interest rates were evidenced for educational debt. Quantile regression analysis has shown that households which, given their socioeconomic background, experienced the highest interest rate costs, paid additional premiums if their debt was related to consolidation of previous debts or consumption. In the case of households paying relatively low premiums, consolidation of other debts and consumption motives were associated with lower interest rates than loans devoted to car purchase.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
Negative debt experiences of individuals lead to costly social and macroeconomic tensions. This study examines the impact of four latent variables, namely financial education, debt literacy, ...personality, and online personal network, on the debt experience of Facebook users in Poland (N = 1,055). Based on some prior research, we proposed a Structural Equations Model (SEM) testing the relationships among variables hypothesised to be linked to debt experience. The findings indicate that debt experience is a complex phenomenon determined simultaneously by many diverse factors. Surprisingly, the personal networks of Facebook users have no significant impact on the debt experience of our respondents. The findings also suggest that results of any explanatory study on debt experiences may strongly depend on the measures used.
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BFBNIB, NMLJ, NUK, ODKLJ, PNG, UL, UM, UPUK
This study evaluated the link between financial literacy and household mortgage decisions. To this end, the longitudinal data set for the U.S. population from the Panel Study of Income Dynamics ...(PSID) was used. Evidence for links between financial literacy levels and (1) mortgage uptake, (2) mortgage interest rates and (3) mortgage refinancing decisions were examined using the two waves (2015 and 2017) of PSID data, combined with the 2016 PSID supplementary questionnaire examining the measured financial literacy of household members. Our results revealed a positive link between financial literacy and mortgage possession and, additionally, between financial literacy and the subsequent decision to take out a mortgage. Moreover, higher financial literacy scores were associated with lower mortgage interests and a greater likelihood of mortgage refinancing. On average, a household that refinanced its mortgage was able to reduce its interest rate by almost 0.7 percentage points, providing evidence of the positive role of financial literacy in securing better mortgage terms.
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BFBNIB, FZAB, GIS, IJS, IZUM, KILJ, NLZOH, NUK, OILJ, PILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
We surveyed representative sample of 1,004 adult Poles to check the extent to which they distinguish among the entities operating in the market for personal loans in Poland, how they perceive loans ...and lending entities, and what is their knowledge on lending/borrowing issues. Particularly, we were interested in getting the insight into the fragment of the market that is operated by personal loan companies, with special emphasis on the profile of the average (statistical) borrower. Our examination was motivated by the controversies surrounding the law amendment started in Poland in 2015 in order to regulate the fraction of the consumer credit market represented by personal loan companies. By utilizing logistic and multivariate linear regression models with variables obtained from our survey, we tested whether the legal reform was well-informed and well-addressed. We found that Polish households have serious problems with distinguishing various entities that provide loans to private individuals and that such problems manifest even greater problem of material shortcomings in Poles’ debt literacy. We also evidenced low public trust to lending entities, particularly to loan companies. In the light of the findings the law amendment is well-grounded, however it should be supported by actions aimed at enhancing households’ financial literacy.
The article discusses internal (residual income measures) and external (stock return measures) value-based metrics. It reveals their similarities, differences and associations among them.
Straipsnyje ...analizuojami vidiniai (likutinių pajamų rodikliai) ir išoriniai (vertybinių popierių grąžos rodikliai) verte grindžiami rodikliai. Jame atskleidžiami jų panašumai, skirtumai bei sąryšiai tarp jų.
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