Gender Differences in Financial Knowledge
Background of the Problem
Studies on gender have become a significant part of scholarly literature in the past several decades. The possible reason for it is that many scientists are trying to analyze the possible differences and similarities in knowledge people of different genders have, as well as the approaches they tend to choose. The presented paper studies the topic of the differences in financial knowledge between male and female undergraduate psychology students. The hypothesis the work will test is that males undergraduate psychology college students have higher monetary knowledge than woman undergraduate psychology college students do. To check the hypothesis, the literature review may be performed, as well as the possible research space will be recognized.
It will be crucial to check into the particular presented research issue because currently, the particular topic is understudied. For instance, inside recent years, there has been many works examining varieties between men and women from the viewpoints of economic literacy. Nevertheless, the findings acquired during some research contradict the kinds received throughout the some other ones. For instance , a few authors declare that men have an improved level of monetary literacy than women, while some present the particular opposite claims. In the same period, the information regarding females’ and males’ financial knowledge might be useful for businesses hiring employees within related positions. Furthermore, financial, educational organizations could use the particular findings of this particular study to change existing studying programs for all students’ needs. Thus, it is vital to study this research problem because there is no consensus on whether the gender factor is a significant determinant of financial literacy.
The theoretical framework utilized for this study is the findings of the study by Agnew and Cameron-Agnew (2015). The authors report that, on average, males are more financially literate than females. Notably, Agnew and Cameron-Agnew (2015) add that the differences in financial knowledge are not associated with the general educational level of men and women but with the levels of their interest and awareness of financial issues in general. The hypothesis was formulated based on the assumption that males have an usually higher level of financial knowledge regardless of the causes of such a phenomenon. It is vital to note that, for this paper, financial literacy is defined as the knowledge an individual has to make informed decisions associated with finances.
The literature review on the issue supports the hypothesis of the study but features opposing perspectives as well. For instance, the work by Driva, Lührmann, & Winter (2016) reveals that there are differences in financial knowledge between male and female students. The authors add that the causes for such differences may be associated with lower self-confidence and gender-specific risk attitudes. The findings presented by Walczak and Pieńkowska-Kamieniecka (2018) and Agyei (2018) match the ones offered above, as the particular authors think that the particular varieties in women’s and men’s’s’s understanding are affected simply by factors other compared to gender. On the other hand, Sholevar and Harris (2019) prove the speculation and admit that will males have an increased level of financial knowledge without mentioning the factors affecting it.
Notably, there are opposing perspectives on the issue as well. The work by Adam (2017) reveals that there is a link between financial knowledge and gender, but it is impossible to say that males have a higher level of financial literacy in all aspects. For instance, women are found to have an increased understanding of whether buying something on credit is feasible (Adam, 2017). Males, on the contrary, have a generally higher interest in accounting. Moreover, Agnew and Harrison (2015) note that the observed differences are associated with biases society has against women.
It is possible to say that there is a major research gap in studies in relation to the presented hypothesis, as there is a limited number of studies analyzing the impact of gender on students’ financial knowledge. This gap is significant because students and older adults may have different levels of financial literacy. In addition, none of the selected studies addresses the issue from the perspective of psychology students. The presented paper may fill in the gap by providing an analysis of this group of individuals.
The aim of the presented study is to analyze possible differences in financial knowledge between male and female undergraduate psychology students. The variable that will be tested during the study is financial literacy; its definition is presented above. The study states the following research question: Is there a difference in financial knowledge between male undergraduate psychology students and female undergraduate psychology students? The following hypothesis is the center of the study: Male undergraduate psychology students have higher financial knowledge than female ones. The research question and hypothesis were chosen in line with the theoretical platform as well as the theory simply by Agnew and Cameron-Agnew (2015) that says that males possess increased financial understanding. The research will lead to knowledge plus real life, since it will allow companies and financial, academic institutions to assess the particular disparities economic literacy between women and men plus alter their methods correspondingly.
Adam, A. Meters. (2017). Gender difference in financial literacy. Journal of Data processing and Management, 7(2), 140-148.
Agnew, S., & Cameron-Agnew, T. (2015). The particular influence of sex and household tradition on financial literacy knowledge; attitudes plus behaviour. Journal of economic Management, Markets plus Institutions, 3(1), 31-50.
Agnew, H., & Harrison, And. (2015). Financial literacy and student behaviour to debt: The cross national research examining the impact of gender upon personal finance ideas. Journal of Selling and Consumer Solutions, 25, 122-129.
Agyei, S. E. (2018). Culture, monetary literacy, and SME performance in Bekwai, ghana. Cogent Economics & Finance, 6(1). Internet.
Driva, The., Lührmann, M., & Winter, J. (2016). Gender differences plus stereotypes in monetary literacy: Off in order to an early begin. Economics Letters, 146, 143-146.
Sholevar, Meters., & Harris, T. (2019). Mind the particular gap: A conversation paper on monetary literacy, financial behavior and financial schooling: Can there be any sex gap? Internet.
Walczak, Deb., & Pieńkowska-Kamieniecka, H. (2018). Gender variations in financial behaviors. Inzinerine Ekonomika-Engineering Economics, 29(1), 123-132.