The intersection of Financial Literacy, Cognitive Ability, and Numeracy Skills in Pakistani adults
Abstract/Description
The evolution of complex financial products is changing the landscape of the global financial system and to make informed financial choices, one has to equip themselves with at least the basic financial knowledge. Financial literacy is a life-skill that must be possessed by all. In this study we examine the impact of cognitive ability and numeracy skills on financial literacy among adults in Pakistan. An online survey was conducted from January to June 2022, and responses of 163 individuals were collected on questions relating to demographics, financial literacy, cognitive reflection, and numeracy skills. The results of the study reveal a positive relationship between financial literacy, numeracy skills, cognitive ability, and some socioeconomic characteristics. It was also found out that education, income, and employment status significantly influence financial literacy levels. These findings add to the existing literature on financial literacy and provide valuable insights for policymakers to design effective and targeted financial literacy programs, which also focus on improving numeracy and cognitive skills to enhance individuals' overall financial decision-making skills.
Keywords
Track
Finance
Session Number/Theme
3B: Finance
Session Chair
Dr. Saqib Sharif; Dr. Nauman J. Amin
Start Date/Time
27-5-2023 2:30 PM
End Date/Time
27-5-2023 4:30 PM
Location
MCS-4, AMAN-CED, First Floor
Recommended Citation
Siddiqi, U. (2023). The intersection of Financial Literacy, Cognitive Ability, and Numeracy Skills in Pakistani adults. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2023/program/43
COinS
The intersection of Financial Literacy, Cognitive Ability, and Numeracy Skills in Pakistani adults
MCS-4, AMAN-CED, First Floor
The evolution of complex financial products is changing the landscape of the global financial system and to make informed financial choices, one has to equip themselves with at least the basic financial knowledge. Financial literacy is a life-skill that must be possessed by all. In this study we examine the impact of cognitive ability and numeracy skills on financial literacy among adults in Pakistan. An online survey was conducted from January to June 2022, and responses of 163 individuals were collected on questions relating to demographics, financial literacy, cognitive reflection, and numeracy skills. The results of the study reveal a positive relationship between financial literacy, numeracy skills, cognitive ability, and some socioeconomic characteristics. It was also found out that education, income, and employment status significantly influence financial literacy levels. These findings add to the existing literature on financial literacy and provide valuable insights for policymakers to design effective and targeted financial literacy programs, which also focus on improving numeracy and cognitive skills to enhance individuals' overall financial decision-making skills.
