A STUDY OF FINANCIAL LITERACY: A BIBLIOMETRIC ANALYSIS AND LITERATURE
SHAILI SINGH
B.COM (HONS) IAF degree program
School of Finance and Commerce
Galgotias University
INTRODUCTION
A Study of Financial Literacy
The concept of financial literacy first appeared in 1797 when John Adams, the second president of the United States, stated:
This explains why Adams is called the founding father of financial literacy in the US. He was the first to recognise the significance of financial literacy, and emphasize the necessity of a foundational knowledge of the essence of money (Goyal & Kumar, 2021). However, the term ‘financial literacy’ only appeared in research in the late 1990s due to the increasing regulation of financial markets and the ease of access to credit loans for the community (Marcolin & Abraham, 2006). Bakken (1967) and Danes and Hira (1987), who examine the need for special education in money management, conducted early studies on financial literacy among high school and college students. In 1992, the National Foundation for Educational Research defined financial literacy as the ability to make the right decisions regarding money management (Noctor et al., 1992). This concept became the starting point for the development of financial literacy studies until the recent boom.
The global economic crisis that occurred in 2008 was caused by increased housing transactions using bank credit and the inability of consumers to pay installments due to rising interest rates (Faulkner, 2015). Consumers who are financially literate will be more careful about taking credit, while those who are 1 financially blind may not know the risks they face later (Abdullah & Chong, 2014).
The Covid-19 pandemic that began in 2020 showed the public the importance of a personal financial budget in the event of an unexpected loss of income. The lack of financial literacy was shown in the global economic crisis and the recession caused by the global pandemic (Kurowski, 2021). Because of this, there are many financial issues.
