CAN WE ENHANCE CONSUMER WELFARE BY MAKING THEM FINANCIALLY LITERATE? STUDYING FINANCIAL LITERACY IN AN ERA OF MOUNTING HOUSEHOLD DEBT IN UAE

Back to Page Authors: Ali Bhayani

Keywords: consumer welfare, public policy, delayed gratification, culture

Abstract: Financial literacy has assumed increased importance in the age of mounting household debt. Several factors impact financial behaviour but delayed gratification and culture might lead to responsible financial behaviour. Study is unique in the sense that it has used academic performance as an indicator of self-control to measure the level of delayed gratification among university students coming from different cultures. Though the study uses interviews, it has used sufficiently large sample of 71 students to understand the level and influences on financial literacy, level of delayed gratification across five distinct cultural groups. Results indicate that parents and family play the most influential role in imparting financial knowledge in form of delayed gratification and self-control at an early age. The study concludes with implications for public policy in enhancing consumer welfare.