There are ongoing discussions about a new reform of the mandatory fully funded individual accounts in the Swedish public pension system. Since the initial round in 2000, several funds have been excluded from the platform due to deceptive, and sometimes criminal, behavior towards the consumers. This paper analyzes which individuals that have invested in these funds, examines possible explanations for this, and sheds light on the current structure of the Premium Pension Scheme. By using a rich dataset on 650,000 individuals that consist of both those who have been in six particular dubious funds and a random sample of the rest of the Swedish pension savers, the variables of interest are evaluated in a logistic setting. The results show that individuals who are men, unmarried, divorced, in their older-middle age, have lower-incomes, live in rural areas, and the North of Sweden are more likely to have invested in one of the dubious funds. The results also reveal that some funds have clearer target-groups, while others have targeted more randomly. The study emphasizes the need for improving people’s financial decision-making through improved information.

In current time we experience deeper and deeper indebtedness of Czech households and their deterioration into insolvency on one side, on the other side among Czech population was identified a very low rate of financial literacy in the last few years. As a result of these two findings a hypothesis was created that behind the high indebtedness stands the low financial literacy of population and that it is possible to fight indebtedness by increasing financial literacy. The thesis main target is to analyze approach of Czech Republic to financial literacy, particularly as to a tool of prevention of indebtedness of households. Simultaneously its target is to reveal relation between financial literacy and indebtedness. According to these reasons the thesis is based on several theoretical outcomes - the theory of prevention of risky behavior, the theory of financial education as a prevention from hazard and from the theory of implementation as a part of public policy cycle. Examined problem is defined using analysis of indebtedness of Czech households, determines the occasions and results of this risky behavior; and through delimitation issue of financial literacy. Thesis provides a synthesis of knowledge as options and limits of financial literacy in the fight with increasing indebtedness. Empirical part...

This diploma thesis deals with the issue of the over-indebtedness of Czech households, its impacts and prevention methods. There are theories of education and consumerist society theories applied as basic theoretical concepts. The thesis analyses the scope and the over- indebtedness ways in the Czech Republic, it describes the causes and the implications of over- indebtedness of households and possibilities or over-indebtedness solution via the form of the debt relief. One of the possibilities how to prevent the over-indebtedness is to increase the financial literacy. The publically political tool used by the state is the financial education within the primary and secondary school systems. There was carried out a research in a particular family struggling with the over-indebtedness within this thesis. There was described the indebtedness origin and the development, the subsequent over-indebtedness and the way how to solve it. It was also described how the education for management of family finances was carried out, what the educational level of the married couple is and what the financial literacy level is. There was a questionnaire research performed within a secondary integrated school based on this research. The aim was to find out the relation among the final receivers of financial education to...

The extensive literature on financial literacy has sought to explain financial behaviours and decisions. On the asset side of the balance sheet, financial literacy is associated with good financial practice and wealth accumulation. On the liability side, however, the contribution of financial literacy to individuals’ financial decisions is not entirely clear. To add to this literature, as well as that of behavioural finance and alternative financial services, this research develops a conceptual framework based on Ajzen’s (1991) theory of planned behaviour (TPB). This framework links individuals’ attitudes to financial matters, subjective norms, perceived feasibility, financial knowledge, and behavioural biases that include overconfidence and present bias on the decision to obtain high-interest loans. The empirical tests of the developed framework suggest that individuals in distinct socio-economic groups have different antecedents that lead to borrowing from alternative financial services. For instance, individuals from low-income households are more likely to obtain these loans if they: do not have access to other forms of credit; struggle to pay their bills; are unemployed; or do not have access to advice from finance professionals. In turn, individuals from high-income households are more likely to obtain these loans if they lack financial knowledge or have behavioural biases like overconfidence or present bias. These results suggest the importance of access to professional advice while ensuring access to traditional means of obtaining credit for low-income individuals in order to reduce the negative effects of these high-interest loans. The results also confirm the importance of current policy initiatives to implement basic finance education in public school curriculums, and the urgency to seek effective approaches to address individuals’ cognitive assumptions.

År 2007 – 2008 var Finanskrisen i full kraft vilket forcerade många individer till att träda ut från aktiemarknaden. Ett hårdare finansiellt klimat och en mer komplex produktmarknad har resulterat i att alla individer inte kunnat parera marknadens hastiga förändringar och därmed invänta en framtida marknadsåterhämtning. Detta utfall kan således ha varit förknippat med stora förluster av finansiella tillgångar. Tidigare forskning indikerar att det existerar ett behov av finansiell förmåga vid dessa typer av krissituationer. Är investerares finansiella förmåga en lösning här? Och isåfall, vilka kunskaper är mest centrala för att uppnå en hög finansiell förmåga? I studiens teoretiska referensram redovisas tidigare forskning och en övergripande inblick ges i investerares portföljsammansättningar samt diversifiering av dessa. Först redogörs det för individers finansiella förmåga som innehar en central roll vid investeringar på aktiemarknaden då en hög finansiell förmåga tenderar att medföra möjligheter som kan frambringa goda ekonomiska förutsättningar. Vidare presenteras grundläggande portföljteori följt av diverse riskpreferenser som existerar i denna kontext. Därefter beskrivs de effekter som ofta uppkommer med i samband med finanskriser.  Syftet med studien är att undersöka hur ingenjörer och ekonomer bygger upp och omfördelar sina aktieportföljer. Ett grundläggande kriterium avseende urvalet är att de har erhållit en examen från Uppsala Universitet, inom antingen ekonomi eller ingenjörsskap, mellan år 2000 till 2018. Det centrala här är att identifiera vilka riskpreferenser som existerar för de båda urvalsgrupperna samt att analysera aktiemarknadsdeltagandet – detta för att identifiera möjliga skillnader utbildningarna emellan.  I kölvattnet av Finanskrisen har flertalet investerare uppvisat tendenser till ett mer riskaversivt beteendemönster där resultaten visar på ett reducerat risktagande efter Finanskrisens avslut (2009 – 2018) i förhållande till perioden innan Finanskrisens uppkomst (2000 – 2006). När effekten av Finanskrisen var som starkast (2007 – 2008) uppvisade investerarna ett tydligt avståndstagande från aktiemarknaden, där de som trots allt valde att stanna kvar på marknaden eftersökte mindre riskfyllda investeringsalternativ. Resultaten pekar på att urvalets ekonomer handlar utifrån en mer riskaversiv utgångspunkt gentemot ingenjörer som istället tenderar att uppvisa en mer riskneutrala inställning till marknadens investeringsalternativ. / During 2007 – 2008 when the global financial crisis was in full effect, a majority of the investors on the stock market were forced to exit due to a harsher financial environment and increasing complexity of financial products. The results of this outcome were associated with losses of financial assets for the investors. Previous research has identified and supported the need for financial literacy during financial crises. Could financial literacy be a key factor in resolving these issues? And if so, what kind of knowledge can lead to greater financial literacy? The purpose of this study is to examine how engineers and economists build and rebalance their portfolios. The aim has been to identify the risk preferences that exists for each target group, and to analyze stock market participation – before, during, and after the global financial crisis. This in turn, is crucial for the ability to compare the investors university education and to investigate possible differences in terms of knowledge. The results show that the investors in this study display risk averse behaviours and hold assets associated with risks that are lower than the market risk. Furthermore, economists tend to be more risk averse than engineers which in comparison are more risk neutral in their market behaviours.

Financial literacy is a national problem; many studies confirmed that Americans have low levels of financial literacy. There is little to no research about financial literacy in Appalachia, and the level of financial literacy was unknown for Appalachian Kentucky. There is a problem deserving attention which can be seen by examination of the 3 key financial indicators. Many researchers found the Appalachian Kentucky region deficient regarding poverty rates, unemployment rates, and personal income rates. The purpose of this study was to develop a baseline level of financial literacy of Appalachian Kentuckians and to compare it to national levels. Becker's theory of human capital served as the theoretical framework of this study. The research questions asked the difference between the levels of financial literacy of Appalachian Kentuckians and Americans. A survey design was used to collect data from residents in an Appalachian Kentucky county (n = 35) that was mathematically average based on the key financial indicators as reported by the Appalachian Regional Commission. The national financial literacy rate was derived from the National Financial Capability Study. A one-sample t test indicated that the financial literacy level of Appalachian Kentuckians is less than the national level. Multiple linear regression analysis indicated that financial literacy levels can be predicted either by personal income or poverty. This study offers positive social change by providing a baseline understanding of financial literacy in Appalachian Kentucky to draw more attention to the improvement needs in this area. Improving financial literacy has the potential to improve key financial indicators of the region, and thus, the lives of Appalachian Kentuckians.

The global pandemic of Covid-19 led to a crisis of not only fatal impact but financially. The stock market experienced one of its biggest market crashes ever and the young investors of our generation experienced something that they could never imagine. Their financial situation and investments suddenly changed and many of them did not know how to act or behave during this difficult period. This paper is based on qualitative research where ten different young investors have been interviewed to determine if they have matured and how their behavior has changed financially. The two research questions for the paper are: Is Covid-19 a blessing in disguise forcing young investors to mature, increasing their financial literacy, and thus change their investment behavior? and how has the Covid-19 pandemic affected young investors decision making on the stock market? The study and research questions were determined using three theories which are the efficient market hypothesis, behavioral finance, and the stages of change model. All three models were used to see how an individual behave during a financial crisis. The efficient market hypothesis basically argues that all relevant information matches the prices of stocks at any given time. Behavioral finance examines how an individual behave in a financial setting such as investment behaviors. Herding behavior and overconfidence are two cognitive biases within behavioral finance that was easily seen in the individuals for this study. The stages of change model states that an individual go through five different stages when a change of behavior is needed. This model could be applied on any individual, but a change of investments behavior should not go through so many stages as the model has so it had some limitations on the individuals in the study. The results and findings of the paper states that young investors have learned a valuable lesson from the Covid-19 pandemic increasing their financial literacy and creating more sustainable strategies for future investments.

Each year, millions of small businesses are established, and individuals that engage in entrepreneurial activities continue to increase significantly. In order for small businesses to be able to grow, external financing is required. Previous research has primarily focused on how financial literacy impacts performance and enables access to finance. This study intends to develop Maxwell and Lévesque's (2014) reasoning about trustworthiness. This paper aims to investigate how entrepreneurs generate trust through their financial literacy in regard to capital contribution. The findings intend to develop a framework for how businesses can nurture trustful communication with the financier and increase their opportunity for financing. Subsequently, this paper has, in detail, explored how entrepreneurs in small businesses, in Sweden, have communicated their financial literacy in connection with capital contribution.   The qualitative methodological reasoning has, in extension of being interpretative, emanated from an inductive nature, to foster the respondent’s experience. The empirical data includes interviews with respondents consisting of 13 entrepreneurs from 11 small Swedish businesses. To fulfill the purpose of this paper, previous research in the field has been collected to, among other, conform the study's self-constructed analysis model which was united with qualitative thematic content analysis to enable a framework for trustful communication.   The result of this paper shows that in the process of conveying entrepreneurs' financial literacy, two main themes, based on time, was identified. Before the meeting and during the meeting with the financier. The majority of the entrepreneurs experience difficulties obtaining the necessary capital, and the relationship with the financier is critical for the company's growth. Before the meeting, the preparatory activities, such as the composition of the team and pitch deck, are of great importance to increase legitimacy and trustworthiness. During the meeting, the entrepreneur can instead focus on generating a successful presentation, a compelling story containing financial information, the business journey, and the team. The study also reveals the importance of having a financier’s orientation, meaning an understanding of the financier and their preferences. Based on this research, we provide guidance for small business entrepreneurs and contribute with a framework, facilitating the financing process by emphasizing how financial literacy can be conveyed. Furthermore, the result makes it possible to distinguish which trust behaviors are the most prevalent before and during the meeting with the financier. Lastly, the signaling theory is not considered sufficient to create an understanding of the financing decision. / Titel: Konsten att förmedla finansiell kompetens genom förtroendeskapande kommunikation – En kvalitativ studie om att erhålla extern finansiering Problemformulering: Hur förmedlar entreprenörer sin finansiella kompetens i samband med kapitaltillskott genom förtroendeskapande kommunikation? Syfte: Syftet med studien är att utveckla kunskap och förståelse för hur entreprenörer i svenska småföretag förmedlar sin finansiella kompetens genom förtroendeskapande kommunikation i samband med kapitaltillskott. Till följd av en ökad förståelse för förmedlingen av entreprenörers finansiella kompetens ämnar studien att utveckla ett ramverk för hur företag kan skapa en förtroendefull kommunikation tillsammans med finansiären för att öka finansieringsmöjligheterna.  Metod: Studiens forskningsansats utgår från en kvalitativ forskningsmetod och har huvudsakligen varit i linje med en induktiv karaktär. För att besvara studiens forskningsfråga och uppfylla studiens syfte har tidigare forskning på området studerats och presenteras under den teoretiska referensramen. Den empiriska data omfattades av semistrukturerade intervjuer med 13 entreprenörer från 11 svenska småföretag. Den analysmetod som används i studien utgår från uppsatsens analysmodell tillsammans med en kvalitativ tematiserad innehållsanalys.  Slutsats: Studiens resultat visar att processen av förmedling av entreprenörers finansiella kompetens kan delas in i två övergripande kategorier med hjälp av ett tidsperspektiv: inför mötet och under mötet med finansiären. Inför mötet blir de förberedande aktiviteterna, såsom sammansättning av team och pitch deck med mera av stor vikt för att kunna öka legitimiteten och trovärdigheten under mötet med finansiären samt att bidra till att företaget blir investeringsredo. Under mötet kan entreprenören fokusera på att presentera en tydlig story innehållande finansiell information, företagsresa och teamet. Studien visar också på betydelsen av att ha en finansiärs inriktning, innebärande en förståelse för finansiären och dess preferenser. Studien bidrar med ett ramverk som avser underlätta finansieringsprocessen genom att framhäva hur den finansiella kompetensen kan förmedlas. Därtill kan vi baserat på studiens resultat och analys urskilja vilka förtroendebeteende som är de mest förekommande inför och under mötet med finansiären. Slutligen anses inte signaleringsteorin som tillräcklig för att på egen hand skapa förståelse för finansieringsbeslutet och dess teoretiska resonemang avslås.

[pt] O letramento financeiro do indivíduo é condição fundamental para seu planejamento financeiro e para a tomada de decisões financeiras conscientes. O conhecimento de Matemática Financeira é uma das plataformas necessárias ao letramento financeiro. Nesse sentido, consideramos que o ensino de Matemática Financeira deve ser iniciado o mais cedo possível, de forma contextualizada e adequada à faixa etária do educando. Neste trabalho apresentaremos propostas pedagógicas e metodológicas para o efetivo ensino de Matemática Financeira Básica no segundo segmento do Ensino Fundamental, baseadas em nossa experiência de trabalho nesta etapa, há mais de dez anos. / [en] The person s financial literacy is a prerequisite for their financial planning and for making conscious financial decisions. The Financial Mathematics knowledge is one of the platforms necessary for financial literacy. In this sense, we consider that the Financial Mathematics teaching should be started as soon as possible, in context and appropriate to the student s age. In this work we present pedagogical and methodological proposals for effective teaching of basic knowledge of Financial Mathematics in Middle School, based on our experience working with this segment for more than ten years.

Financial literacy is a debated concept and field of knowledge. There are various interpretations regarding what the financial literacy education should contain and aim for. This study focuses on financial literacy and how it is presented in various teaching materials intended for Swedish upper secondary school and the subject of social studies. The purpose of the survey is to analyze what appears to be important financial knowledge and how the content is presented. The survey also aims to examine what kind of “ideal citizen”  that the materials seek to create. To examine this, I use the citizenship conceptions outlined by Westheimer and Kahne. The analysis shows that the teaching materials convey similar content despite being produced by different providers. There are, however, some differences in what aspects the various teaching materials highlight and choose to focus on. Income, expenses, budgeting, loans, savings and debts are recurring themes in all teaching materials. These can therefore be interpreted as important financial knowledge. The content is mainly presented in an explanatory and normative way. The analysis reveals that the three citizenship conceptions "the personally responsible citizen", "the participatory citizen", and "the justice-oriented citizen" are expressed in almost all teaching materials. However, the citizenship conception that predominates and is particularly evident is "the personally responsible citizen". The overarching goal appears to be to educate students to become responsible citizens who manage their finances, plan, budget, save, avoid unnecessary loans and debt, and make effective and responsible decisions. The content of the teaching materials largely mirrors the OECD's definition of financial literacy and has generally a strong focus on individual financial behavior, responsibility and choices.