9. Anna Yu. Rumyantseva, Hod Anyigba

Antecedents of Consumer Financial Capability and Its Effect on Financial Resource Mobilization

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  • Abstract
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Anna Yu. Rumyantseva

Director of the Institute of international program of St. Petersburg university of
management technologies and economics, Ph.D. in Economics

Lermontovskiy Ave 44/A, St. Petersburg, Russian Federation, 190103

Hod Anyigba

Director of Graduate Programs, Assistant Professor of Economics & Entrepreneurship of Nobel International Business School, Ph.D. in Economics

7 Oleander Street, East Legon, Ghana

The current research is aimed at studying the financial capability of consumers as a key contributor to resource mobilization and financial well-being of individuals both in the short-run and in the long-run. This spillover effect, generally builds on public spending and consumption, which affects economic growth and development.
Goal. To conceptualize and analyse antecedents of financial capability and its effect on the financial well-being on individuals.
Tasks. To conduct a purposive literature review on constructs of financial capability; to study a methodology and metrics in aggregating financial capability metrics; to make recommendations on policy implications for effective financial capability accumulation.
Methodology. An in-depth selective and purpose approach to literature review was utilized. The analyses is based on a longitudinal assessment.
Results. Financial capability is an important factor providing a favourable result in the financial resources formation. Financial knowledge is critical in determining an individual’s ‘financial self-efficacy. The study reveals that, higher financial behaviour is generally associated with more desirable financial behaviours. In other words, objective and financial financial literacy has a positive impact on financial capability, which is mediated by consumer financial behaviour.
Conclusions. Policy makers must pay attention to the consumer financial capability levels so that financial toolkits like personal financial education programs allows are targeted at individuals to boost their financial literacy. Our findings suggest that financial education may enhance financial capability. Consumers are more likely to accept financial education because of financial security (e.g. retirement benefits), therefore, individual capacities should be enhanced through rigorous and comprehensive financial education packages.

Keywords: financial capability, financial resources, financial literacy, financial behaviour, financial knowledge, consumer


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