Analysis of financial capacity of individuals according to demographic and financial profiles

Abstract

Financial capacity is a concept that contributes to the effective functioning of financial markets and financial stability. Financial capacity is a concept that shows the financial competence of individuals and includes financial literacy. In this study, first of all, the financial capacities of individuals were determined, then it was determined whether there was a difference in the financial capacities of individuals with different demographic and financial profiles. The questionnaire form prepared for this purpose was sent to the individuals by random sampling method and analyses were made in line with the answers given. As demographic variables, the gender, marital status, education level, age, occupation and income level of the investors were included in the study. In order to determine the financial profiles of individuals, monthly savings levels of individuals, adequacy of income, risk profile and financial status of individuals were taken into account. Four variables, namely money management, financial planning, financial product selection and financial information, were used to measure financial capacity. SPSS program was used to analyze the obtained data. A total of 445 participants participated in the study. As a result of the study, it has been determined that the financial capacity levels of individuals are high according to the answers they give to the variables used to determine their financial capacity, such as money management, financial planning, financial product selection and access to financial information. At the same time, significant differences were found in the financial capacity levels of individuals according to the variables of gender, age, income, savings and wealth structure. Policy makers can develop strategies to further increase the financial capacities of individuals and carry out studies to eliminate these differences between individuals.

Keywords

• Financial capacity
• Financial planning
• Financial management
• Capital market

Bireylerin demografik ve finansal profillerine göre finansal kapasitelerinin analizine yönelik bir alan araştırması

Abstract

Finansal kapasite, finansal piyasaların etkin işleyişine ve finansal istikrara katkıda bulunan bir kavramdır. Finansal kapasite, bireylerin finansal yeterliliklerini gösteren ve finansal okuryazarlığı içine alan bir kavramdır. Bu çalışmada öncelikle bireylerin finansal kapasiteleri belirlenmiş daha sonra farklı demografik ve finansal profile sahip bireylerin finansal kapasitelerinde farklılık olup olmadığı tespit edilmiştir. Bu amaçla hazırlanan anket formu tesadüfi örneklem yöntemi ile bireylere ulaştırılmış ve verilen cevaplar doğrultusunda analizler yapılmıştır. Demografik değişken olarak yatırımcıların cinsiyeti, medeni durumu, eğitim durumu, yaşı, mesleği ve gelir düzeyi çalışmaya dâhil edilmiştir. Bireylerin finansal profillerini belirlemeye yönelik olarak ise bireylerin aylık tasarruf düzeyleri, elde edilen gelirin yeterlilik durumu, risk profili ve bireylerin finansal durumu dikkate alınmıştır. Finansal kapasitenin ölçülmesinde para yönetimi, finansal planlama, finansal ürün seçimi ve finansal bilgi olmak üzere dört değişken kullanılmıştır. Elde edilen verilerin analiz edilmesinde SPSS programından faydalanılmıştır. Çalışmaya toplam 445 kişi katılım göstermiştir. Çalışma sonucunda bireylerin para yönetimi, finansal planlama, finansal ürün seçimi ve finansal bilgiye ulaşım olmak üzere finansal kapasitelerini belirlemeye yönelik kullanılan değişkenlere verdikleri cevaplara göre finansal kapasite düzeylerinin yüksek çıktığı tespit edilmiştir. Çalışmada aynı zamanda cinsiyet, yaş, gelir, tasarruf ve varlık yapısı değişkenlerine göre bireylerin finansal kapasite düzeylerinde anlamlı farklılıklar tespit edilmiştir. Politika yapıcıları bireylerin finansal kapasitelerini daha da yukarı çıkarmaya yönelik stratejiler geliştirebilir, bireyler arasındaki bu farklılıkları ortadan kaldırmaya yönelik çalışmalar yürütebilir.

Keywords

• Finansal kapasite
• Finansal Planlama
• Finansal yönetim
• Sermaye piyasası

References

1. Al‐Bahrani, A., Weathers, J. ve Patel, D. (2019). Racial differences in the returns to financial literacy education. Journal of Consumer Affairs, 53(2), 572-599. Doi: https://doi.org/10.1111/joca.12205.
2. Atkinson, A., McKay, S., Kempson, E. ve Collard, S. (2006). Levels of financial capability in the UK: Results of a baseline survey. London: Financial Services Authority
3. De Meza, D., Irlenbusch, B. ve Reyniers, D. (2008). Financial capability: A behavioural economics perspective. Consumer Research Report 69. London, Financial Services Authority.
4. Falahati, L. ve Paim, L. H. (2012). Experiencing financial problems among university students: an empirical study on the moderating effect of gender. Gender in Management: An International Journal, 27(5), 315-330. Doi: https://doi.org/10.1108/17542411211252633.
5. Fan, L., Chatterjee, S. ve Kim, J. (2022). An integrated framework of young adults’ subjective well-being: The roles of personality traits, financial responsibility, perceived financial capability, and race. Journal of Family and Economic Issues, 43(1), 66-85.
6. Huang, J. I. N., Nam, Y., Sherraden, M. ve Clancy, M. (2015). Financial capability and asset accumulation for children's education: Evidence from an experiment of child development accounts. Journal of Consumer Affairs, 49(1), 127-155. Doi: https://doi.org/10.1111/joca.12054.
7. Johnson, E. ve Sherraden, M. S. (2007). From financial literacy to financial capability among youth. Journal of Sociology & Social Welfare, 34(3), 119–146.
8. Kalaycı, Ş. (2018). SPSS Uygulamalı Çok Değişkenli İstatistik Teknikleri (8. Baskı). Ankara: Dinamik Yayınevi. Keown, L.A. (2011). The Financial Knowledge of Canadians. Canadian Social Trends, 11(8), 30–39.

9. Kim, M., Koo, H. G. ve Jang, J. (2022). Financial capabilities and financial behavior of overseas Filipino workers in South Korea. Asian and Pacific Migration Journal, 31(2), 118-140. Doi: https://doi.org/10.1177/01171968221113342.
10. Klapper, L. ve Panos, G. A. (2011). Financial literacy and retirement planning: The Russian case’. Journal of Pension Economics and Finance, 10(4), 599–618.
11. Kumar, P., Pillai, R., Kumar, N. ve Tabash, M. I. (2022). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169-183. Doi: https://doi.org/10.1016/j.bir.2022.09.012.
12. Lowies, B., Helliar, C., Lushington, K. ve Whait, R. (2019). The financial capability of older people. University of South Australia.
13. Lučić, A., Barbić, D. ve Uzelac, M. (2022). Theoretical underpinnings of consumers’ financial capability research. International Journal of Consumer Studies. 1-27. Doi: https://doi.org/10.1111/ijcs.12778.
14. Lusardi, A. (2011). Americans' financial capability (No. w17103). National Bureau of Economic Research. Millimet, D. L., McDonough, I. K. ve Fomby, T. B. (2018). Financial capability and food security in extremely vulnerable households. American Journal of Agricultural Economics, 100(4), 1224-1249. Doi: https://doi.org/10.1093/ajae/aay029.
15. Mokhtar, N., Sabri, M. F. ve Ho, C. S. F. (2020). Financial capability and differences in age and ethnicity. The Journal of Asian Finance, Economics and Business, 7(10), 1081-1091. Doi: https:// doi:10.13106/jafeb.2020.vol7.no10.1081.
16. Nam, Y. ve Loibl, C. (2021). Financial capability and financial planning at the verge of retirement age. Journal of Family and Economic Issues, 42(1), 133-150. Doi: https://doi.org/10.1007/s10834-020-09699-4.
17. Potocki, T. ve Cierpiał‐Wolan, M. (2019). Factors shaping the financial capability of low‐income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187-198. Doi: https://doi.org/10.1111/ijcs.12498.
18. Sherraden, M. S. (2010). Financial capability: what is it, and how can it be created?. Buılding Fınancıal Capabılıty In Low Income Households, 1-30.
19. Storchi, S. ve Johnson, S. (2016). Financial capability for wellbeing: an alternative perspective from the capability approach (No. 44). Bath Papers in International Development and Wellbeing.
20. Sun, S. ve Chen, Y. C. (2022). Is financial capability a determinant of health? theory and evidence. Journal of Family and Economic Issues, 43, 744-755. Doi: https://doi.org/10.1007/s10834-022-09869-6.
21. Sun, S., Chen, Y. C., Ansong, D., Huang, J. ve Sherraden, M. S. (2022). Household financial capability and economic hardship: An empirical examination of the financial capability framework. Journal of family and economic issues, 43(4), 716-729. Doi: https://doi.org/10.1007/s10834-022-09816-5.
22. Taylor, M. (2011). Measuring fnancial capability and its determinants using survey data. Social Indicators Research, 102(2), 297–314.
23. Xiao, J. J. ve Bialowolski, P. (2022). Consumer financial capability and quality of life: A global perspective. Applied Research in Quality of Life, 1-27. Doi: https://doi.org/10.1007/s11482-022-10087-3.
24. Xiao, J. J., Chen, C. ve Chen, F. (2014). Consumer financial capability and financial satisfaction. Social indicators research, 118(1), 415-432. Doi: 10.1007/s11205-013-0414-8.
25. Xiao, J. J., Chen, C. ve Sun, L. (2015). Age differences in consumer financial capability. International Journal of Consumer Studies, 39, 387-395. Doi: https://doi.org/10.1111/ijcs.12205.
26. Xiao, J. J. ve Kim, K. T. (2022). The able worry more? Debt delinquency, financial capability, and financial stress. Journal of Family and Economic Issues, 43(1), 138-152. Doi: https://doi.org/10.1007/s10834-021-09767-3.
27. Xiao, J. J. ve O'Neill, B. (2018). Propensity to plan, financial capability, and financial satisfaction. International Journal of Consumer Studies, 42(5), 501-512. Doi: https://doi.org/10.1111/ijcs.12461.
28. Xiao, J. J. ve Porto, N. (2017). Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. International Journal of Bank Marketing, 35(5), 805-817. Doi: https://doi.org/10.1108/IJBM-01-2016-0009.
29. Xu, L. ve Zia, B. (2012). Financial literacy around the world: An overview of the evidence with practical suggestions for the way forward. Policy Research Working Paper, 1–56.
30. Yi, H., Meng, X., Linghu, Y. ve Zhang, Z. (2022). Can financial capability improve entrepreneurial performance? Evidence from rural China. Economic Research-Ekonomska Istraživanja, 1-20.