Effects of financial education on sound personal finance in Korea: Conceptualization of mediation effects of financial literacy across income classes

This study analyzed the role of financial literacy as a mediator between financial education and sound personal finance to assess how financial education affects the soundness of personal finance. In particular, this study conducted three sets of mediation analyses using data from the 2014 Consumer...

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Bibliographic Details
Published inInternational journal of consumer studies Vol. 43; no. 1; pp. 77 - 86
Main Authors Son, Jiyeon, Park, Jooyung
Format Journal Article
LanguageEnglish
Published Oxford Blackwell Publishing Ltd 01.01.2019
Subjects
Classes
Concept formation
Consumers
Education
Empowerment
financial education
Financial literacy
Korea
Literacy
mediator
Personal finance
Policy making
Retirement planning
sound personal finance
South Korea
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Summary:This study analyzed the role of financial literacy as a mediator between financial education and sound personal finance to assess how financial education affects the soundness of personal finance. In particular, this study conducted three sets of mediation analyses using data from the 2014 Consumer Empowerment Index survey of the Korea Consumer Agency to verify whether the mediating relationship is valid across different income classes of the Korean population. The results suggest that financial literacy works as a mediator between financial education and sound personal finance in the high‐income class and the middle‐income classes. Therefore, policymakers should consider the limitations of financial education and financial literacy when addressing low‐income consumers.
ISSN:1470-6423
1470-6431
DOI:10.1111/ijcs.12486