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    Theoretical Framework

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    Sefuentes, Liahrie A.
    The document presents a theoretical framework for studying the relationship between financial literacy and investment decisions. It proposes measuring individuals' financial literacy based on their investment procedures and financial decision making abilities. The framework also aims to determine how financial literacy impacts investment decisions of police officers in Davao Oriental, Philippines. Financial literacy is important as it allows people to make wise financial judgments and retirement plans, especially as the global economy becomes more complex. However, studies show financial illiteracy remains widespread.

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    Theoretical Framework

    Uploaded by

    Sefuentes, Liahrie A.
    14 views3 pages
    The document presents a theoretical framework for studying the relationship between financial literacy and investment decisions. It proposes measuring individuals' financial literacy based on their investment procedures and financial decision making abilities. The framework also aims to determine how financial literacy impacts investment decisions of police officers in Davao Oriental, Philippines. Financial literacy is important as it allows people to make wise financial judgments and retirement plans, especially as the global economy becomes more complex. However, studies show financial illiteracy remains widespread.

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    It is all about Theoretical Framework of Financial Literacy on Investment Decision

    Original Title

    Theoretical-framework

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    The document presents a theoretical framework for studying the relationship between financial literacy and investment decisions. It proposes measuring individuals' financial literacy based on their investment procedures and financial decision making abilities. The framework also aims to determine how financial literacy impacts investment decisions of police officers in Davao Oriental, Philippines. Financial literacy is important as it allows people to make wise financial judgments and retirement plans, especially as the global economy becomes more complex. However, studies show financial illiteracy remains widespread.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views3 pages

    Theoretical Framework

    Uploaded by

    Sefuentes, Liahrie A.
    The document presents a theoretical framework for studying the relationship between financial literacy and investment decisions. It proposes measuring individuals' financial literacy based on their investment procedures and financial decision making abilities. The framework also aims to determine how financial literacy impacts investment decisions of police officers in Davao Oriental, Philippines. Financial literacy is important as it allows people to make wise financial judgments and retirement plans, especially as the global economy becomes more complex. However, studies show financial illiteracy remains widespread.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Theoretical Framework:

    People must be able to make wise financial judgments in a market that is

    becoming more hazardous and international. Financial illiteracy is pervasive,

    according to recent worldwide studies, in both highly developed and dynamic

    economies. The young and the old are less financially literate than the middle-aged,

    while better educated persons are more financially savvy. Women are less financially

    literate than males. In particular, those who are financially savvy are more likely to

    make retirement plans. Estimates of instrumental factors reveal that the influence of

    financial literacy on retirement planning is frequently understated. In conclusion,

    financial knowledge is essential to retirement security everywhere.

    Figure 1: Theoretical framework of Financial Literacy


    The theoretical framework that underpins this study, which comprises a three-

    part procedure and is depicted in Figure 1, is as follows: the profile of the respondents

    is based on their age, gender, rank and length of services. As inputs, the level of

    awareness to financial literacy will be measured through their investment procedure.

    As well as the level of financial decision, to provide concrete data and fill the gap of

    the study. In addition, the study wants to know the relationship between financial

    literacy and investment decision of the respondents. Furthermore, this study aim to

    determine the Financial Literacy on Investment Decision of Philippine National

    Police in District 2 Davao Oriental.

    As stated by Aren et.al (2020), today, the value of financial literacy is rising.

    Knowledge of finance, especially in the economic and financial worlds, is very

    helpful in describing diverse economic and financial behavior. Economic agents'

    ability to grasp basic financial concepts and make decisions is greatly influenced by

    their level of financial literacy. People have been more accountable for their financial

    planning throughout time and are now more active agents than before. In reality,

    given that previous crises disproportionately hurt the young and inexperienced, this

    heightened accountability may have originated from a humanistic urge to protect

    oneself.

    In addition,financial literacy is the capacity to comprehend financial issues.

    consisting of a collection of abilities and information that enables an individual to

    make decisions. Their awareness of money allows them to make educated and

    successful judgments. It is related with a collection of attitudes, behaviors, and

    knowledge that are crucial for financial decision making. These decisions include

    whether to save, when to spend, budgeting, selecting the correct financial products,
    and being willing to address other events such as paying children's education and

    retirement planning. The greater people's financial literacy, the greater their advantage

    since it allows them to make better financial decisions and provides them more

    control over their money.

    Reference:

    Aren et.al (2020), A Literature Review On Financial Literacy. Retrieved from:

    https://www.researchgate.net/publication/267641595_A_Literature_Review_O

    n_Financial_Literacy

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