THE IMPACT OF FINANCIAL LITERACY ON FINANCE AND ECONOMY: A LITERATURE REVIEW

Mubarokah Bunyamin; Norwazli Abdul Wahab

doi:10.51200/lbibf.v20i2.3677

Authors

Mubarokah Bunyamin University Malaysia Pahang
Dr University Malaysia Pahang

DOI:

https://doi.org/10.51200/lbibf.v20i2.3677

Abstract

Financial literacy encourages individuals and society to improve their financial well-being. Hence, increase their capabilities to take part in economic life. This paper aims to investigate the impact of financial literacy on finance and economy. An extensive review of financial literacy literature is carried out, with a specific attention on its correlation with financial and economic aspects. This study unveils that financial literacy gives impacts on personal financial decisions, behaviour, saving and retirement, investment, financial risk tolerance, business, and national economy. This paper will be useful to economists and technologist about the importance of financial literacy with the suggestions on the role of financial technology (FinTech) in enhancing financial literacy, thus financial well-being as well as overall well-being towards industrial revolution 4.0 (IR 4.0).

Author Biography

Dr, University Malaysia Pahang

Author’s Full Name: Norwazli Bt Abdul Wahab

Author’s Email: norwazli@ump.edu.my

Author Professional Bio:

Norwazli Bt Abdul Wahab is currently a Senior Lecturer at Faculty of Industrial Management, Universiti Malaysia Pahang (UMP). She obtained her PhD from Universiti Teknologi MARA (UiTM). She completed her Master of Business Administration in Finance, Bachelor of Accountancy (Hons) and Diploma in Accountancy from Universiti Teknologi MARA (UiTM). She has experience working in the industry as an account and finance executive. Her areas of research include corporate governance, corporate social responsibility, corporate financial performance, financial planning and risk management.