Financial Literacy Through Media

Financial literacy through media 1
Financial Literacy and Spreading It through Media
Submitted By: ABNAS SALEEM, ANILA JAMIL
Supervisor: MR. MUHAMMAD IDREES
Hailey College of Banking & Finance
University of the Punjab, Lahore

DEDICATION:
We humbly thank Allah Almighty, the Merciful and the Beneficent, who gave us health,
thoughts and co-operative people to enable us achieve this goal.
We would like to dedicate this report to our parents and our siblings, without them we
would have not been where we are today; it was their never ending moral support,
encouragement, motivation, patience, understanding, love and prayers which acted as a
catalyst in our academic life.
Moreover we would like to extend our gratitude to our respected teacher Mr. Muhammad
Idrees and friends for being so supportive and helpful in the completion of our thesis
which would have been impossible without them.
A.S
A.J
LETTER OF AUTHORIZATION
ACKNOWLEDGEMENT
We are extremely grateful to Almighty Allah the

beneficial the merciful who blessed us with Will,
courage, strength and guidance to complete
and compile such hard thesis work successfully.
We extend our sincere gratitude to Sir Idrees for
his continuous support and excellent guidance.
His unfailing patience, consistent
encouragement, cooperation and precious
suggestions helped us throughout our thesis.
We are also thankful to Sir Fida Hussain Bukhari
for his valuable contribution and motivation for
the completion of our thesis.
A.S
A.J
TABLE OF CONTENTS
CHAPTER-1
1.1
Introduction………….............................................................................7
1.2 Statement of the Problem……………………………………………..9
1.3 Significance of the Study ………………………………………….....9
1.4 Objectives……………….. …...……………………………………..9
1.5 Research Questions……………………………….…… ……….…10
1.6 Methodology………………………………………………………...10
1.7 Limitations…………………………………………………………..11
1.8 Definitions of Key Terms..……………...………………..………….11
CHAPTER-2
2.1 Review of literature……………………………………………….. .12
2.2 importance of financial literacy……………………………………..13
2.3 Financial Literacy In Pakistan……………………………………....16
2.4 Media………………………………………………………………..17
2.5 Types of Media……………………………………………………...18
2.6 Benefits of Media……………………………………………………18
2.7 Importance Of Media ……………………………………………….19
2.8 Media In Pakistan……………………………………………………20
2.9 Financial Literacy and Media………………………………………..21
CHAPTER-3
3.1 Procedure of the Study………………………………………………24
3.2 Research design…………………………………………….………..24
3.3 Population of the Study..………………………………… ………...24

3.4 Sample of the Study……………………………… ………………...25
3.5 Tools for Data Collection………………………………………….…25
3.6 Data Collection……………………………….……………………...25
3.7 Data Analysis ……………………………………………. ……..…..25
3.8 Delimitation of the Study…………………………………………….25
CHAPTER-4
4.1 Analysis of Data……………………………………………………..26
CHAPTER-5
5.1 Summary…………………………………………………………….39
5.2 Findings……………………………..………………………………40
5.3 Conclusions……………………………………………………..…..41
5.4 Recommendation……………………………………………………41
5.5 References…………………………………………………………..43
Appendices
Chapter I
1.1 Introduction
Financial decision making is the most important and sometimes the most difficult
part of life. This decision making always require critical review of available option and to
choose best of it. In case of financial decisions making a wrong decision can lead us to a
future full of financial troubles.
As compared to decade ago current financial scenario has totally changed. In last two
decades it was sufficient to have knowledge of how to check and maintain a saving and
current account at a bank or financial institution. Nowadays consumers and investors
have to be able to understand and differentiate among a wide variety of financial products
and services.
A decade ago people were less indebted and did not require a complete or
comprehensive knowledge of credit and the impact of simple or compounding interest
neither they had to be worried about the consequences of mismanagement of the credit
accounts.
Cohen and Nelson (2011) in their study described that generally three terms are used
in literature-financial literacy; financial education and financial capability these three
terms are totally different but usually cause confusion. Financial literacy is about the
consumer to keep himself inform about the products he is going to buy and to understand
the things written in the contract he is going to sign. In reaching this goal financial
education is the most basic and most important tool. On the other hand financial
capability involves the financial service providers to provide the right and suitable
products to the target market.

Most of the definitions of financial literacy have been devised in developed countries
where greater attention is given to this concept as compared to those of developing
countries. But the basic thing is to have the knowledge and skills to make financial
decisions.
Financial literacy differs from person to person and from developed economies to the
developing or underdeveloped economies. In developed economies financial literacy may
deal with the knowledge about insurance needed, matters related to tax or credit cards
while in case of developing economies where most of the people are unbanked it may
deals with the concepts of how to save, where to invest, how to prepare budget and
matters related to borrowing.
In Pakistan business of banking and financial institution is rapidly growing and as
very few people are aware of the benefits of using financial products and services others
are unable to exploit the opportunities lying before them due to lack of financial means.
Financial literacy is related to the understanding and having knowledge of financial
matters it can be effective in enabling the people to find how they can fulfill their
financial needs. It is necessary to take steps to spread financial literacy through various
means. In Pakistan electronic media can be the most effective way to spread the financial
literacy among people.
In Pakistan different channels can be used to serve the objective of spreading the
financial literacy on a socio-economic level to a smaller audience. For a smaller audience
face to face or a group based trainings are best available options but in case of very large
audience media can serve the purpose T.V or radios can be used to broadcast messages
about saving, investments, borrowings and budgeting or it can be used to broadcast

messages about financial products like current accounts, saving accounts, insurance and
lease etc. Print media can also be useful in spreading financial literacy in a way that
financial information can be spread through brochures, billboards and newspapers.
1.2 Statement of the problem
What is the role of media in promoting Financial Literacy in Pakistan?
1.3 Significance of the study
This study mainly deals with the importance of financial literacy and shows that if it
lacks then it will result in making poor financial decisions which in result can have
adverse impact on the financial position of the individual as well as of nation. For
example, if an individual is financially literate then he can easily understand the issues
regarding variable and fixed rates, and similarly their advantages and disadvantages.
By providing awareness regarding financial matters to the people will help them to
use this knowledge not only for their business, saving and investing purposes but also in
their daily lives such as budgeting etc.
This study accentuates the importance of media in Pakistan and how it can be used in
spreading financial literacy.
1.4 Objective of the study
The main objective of this study is to find out how financial literacy is important
now-a-days and how Pakistani media can play an important role in spreading financial
literacy and enable the people to make their financial decisions more efficiently and
effectively without being dependent on any other person. As media has a strong power to
influence the others and has a significant impact in individuals’ lives.

1.5 Research questions
The following research questions will be used as a guide to the study:
 Why is financial literacy important?
 How can it be achieved?
 How financially literate are we?
 Is financial literacy effective?
 What role is played by media in promoting the financial literacy among people?
 Can media play efficient and effective role in financial literacy?
 Does financial literacy help the people in their lives in this financial crisis era?
 Can this financial literacy advantageous for the economy?
 Is financial literacy given the same preference by media as compared to the other issues
such as economic crisis, political matters and glamour world?
1.6 Methodology
In this thesis correlational research method has been used to find the effect of media
in promoting the financial literacy. This study has been conducted in natural environment
without any interference. As the study is based on primary data and due to no access to
the entire population, random sampling has been used. The unit of analysis was
individuals from rural and urban areas. A questionnaire was used to collect data from the
unit of analysis.
1.7 Limitations
Time is one of the major constraints as primary data is to be gathered. The study was
limited to Lahore city only. Because of the shortage of time and resources the researcher
was unable to conduct the study on a broader scale.
1.8 Definition of major terms
Financial Literacy: According to the U.S. Government Accountability Office
(GAO), financial literacy enables the individuals to make well-versed decision and
actions regarding the usage and management of the money effectively and efficiently. It is
the ability to understand wide range of financial choices and deals with the questions like
how to spend wisely, where to invest, how to prepare a budget and how to tackle the
challenges like saving for the future and most importantly for the retirement, paying for
children’ education and how to tackle the job loss.
Media:
Media is a word that is derived from a Latin word medium. As media is the plural of
the medium so it is traditionally viewed that media is used as collective or plural noun.
But it can also treat as singular noun depending upon the sense intended.
Chapter II
2.1 Review of literature
In the paper (Over)confidence and economic behavior, while anticipating
performance on conjectural investment project Parker, Yoong, Bruine de Bruin, and
Willis (2008) found out that financial literacy is a very vast subject and it is not confine to
only one specific aspect of finance. Most of the people think that it is just a matter of
general knowledge but in reality it is basic knowledge of finance which outperformed
general knowledge.
Financial literacy has been defined in several different ways some of them are as
follow:
According to National Council on Economic Education (2005), financial literacy is
the knowledge of basic economics principles, economy of the U.S., and understanding of
the basic economics terms.

U.S. Dept. of Treasury (2008) defined financial literacy as “the ability to make
informed judgments and to take effective actions regarding the current and future use and
management of money”
With an apropos to the definition provided by the Organization for Economic Co-
operation and Development (OECD) financial literacy is having a grip on the basic
financial concepts and having the skills and confidence to use these concepts in making
effective decisions regarding wide range of financial products available in financial
markets.
In Mason & Wilson study (as cited in Pinto & Coulson) financial literacy has been
defined as “an individual’s ability to obtain, understand and evaluate the relevant
information necessary to make decisions with an awareness of the likely financial
consequences”.
2.2 Importance of Financial literacy
Financial literacy is the process in which conveying the information is the first step
and enabling the consumer to take steps for its financial wellbeing consciously is the final
and most important step. Financial literacy can play an important role in motivating the
people to have an access to finance and this can be achieved by creating a conducive
environment for them which will enhance financial behavior and will promote savings,
investments, budgeting and utilization of credit wisely.
In the article Financial Literacy: An overview of practice, research and policies
Braunstein & Welch argued that most of the financially literate people agree that today’s
consumer lacks the financial literacy and thus are unable to make financial decision
which is best suitable to their own interest. Lack of financial literacy can have an adverse
effect on the management of the money of an individual in short and as well as long term
due to which saving for future becomes next to impossible.
Financial literacy enables the individuals to assess their financial needs
effectively and efficiently which in return help them in finding most suitable financial
products. Individuals having the financial literacy know from where to seek financial
advice, what should they ask? Financially literate people have greater ability in
understanding the financial advices given to them by the professionals. They can assess
the risk and reward associated with different investments and financial products.
Financial literacy helps the individuals in not making the abrupt decisions and helps
them in calculating the rate of return and feasibility of an investment. While those who
have little or no knowledge of financial literacy make improvised decisions which in
return can be disastrous for their financial wellbeing.
Recent financial crisis of 2008 had badly struck not only the developed countries but
also the developing countries. This financial crisis stemmed from the developed
countries’ financial markets in which a large number of people were provided with the
access to credits. It is argued that financial illiteracy was one of the main reasons behind
this crisis as financial literate people are very much cautious about taking the loan which
they cannot afford.
According to Lusardi and Tufano (2008) financial literacy enables the people to
make effective decisions regarding savings and investments while debt literacy, an
important aspect of financial literacy enables them to make decisions about debt contracts
and specifically how to use knowledge of simple and compound interest.
Moore (2003) in his article Knowledge, Behavior, Attitudes, and Experiences
discusses that financial literacy makes people competent enough to apply the financial
knowledge they have gained. Indirect means must be used to measure the financial
literacy as it cannot be measured directly. Experience together with the knowledge makes
the people more literate and when the literacy increase people become financially
sophisticated which in result may lead them to be more competent.
On a broader level market operations and competitors cannot operate efficiently
unless and until consumer does not know which products they need. Financially literate
individuals make informed and effective decisions regarding the financial products they
need for their short as well as long term financial benefits.
Today’s financial service market has become more complicated, sophisticated and
specialized and requires the consumers to participate actively and knowingly in market so
that they can manage their finances in a proper and effective manner. Technological
advancements together with market innovation and increased competition had played an
important role in providing a wide array of financial products and services.
Due to increased focus on financial literacy different financial literacy programs
had been introduced. Some programs are more comprehensive as compared to others and
focus on savings, investments and credit for different people while some programs focus
on specific groups like youngsters, housewives and students. The most effective
programs are those having specific objectives and have been proved to be helpful in
improving the financial management of individuals.
Although financial literacy alone does not help in improving financial condition of
an individual rather human trait, behavior and the timing and the way in which financial
information is conveyed also play crucial role in it. So it poses a greater challenge for
those who develop financial literacy programs.
2.3 Financial literacy in Pakistan
Claessens and Tzioumis (2006) in their study Measuring firms’ access to finance
state that having an access to the financing nowadays considered to be the source of
reduction in poverty and of economic inclusion. Poverty can be reduced significantly by
having an increased access to the financial services. In Pakistan an average Pakistani does
not participate in the financial system rather they like to save money at home and borrow
it from family or friend in the time of need.
According to the State Bank of Pakistan 17% of the Pakistani population i.e. 27
million has lower than $1/day to live on while 73% i.e. 116 million has $2/day.
Microfinance services are available to only 2% of poor people while banking services are
available to 3.6% of the population i.e. 6 million borrowers. There is only one bank
branch to provide services to twenty thousand people on average.
In Pakistan 67% of the total population resides in rural areas from which only 14%
are using banking services. Beside urban areas it is very much important to consider rural
areas to be targeted for financial literacy due to the fact that 67% of total Pakistani
population lives in rural area and people of rural areas are more conscious about financial
matters. Similarly those with high education, head of the family and employed persons
are also very much eager for the betterment of their financial matters. Age and gender
does not contribute to the increased or decreased interest in the financial matters. All
these things must be considered while formulating a policy regarding financial literacy to
save time and other resources.
According to the Pakistan A2F Household Survey (2008), 51.2% of the population
takes a keen interest in financial matters. Nearly 60.6% of the households equally in
urban and rural areas take interest in whatever is said and written about the financial
matters. 41.1% of the households take the financial information from their families or
friends while 24.5% get this information through media. In Pakistan 18.3% of the rural
areas depend on the media for this information as compared to the 31.5% of the urban
areas who rely on media to get financial information.
Many Pakistanis nearly 78.1% does not make their financial decisions alone rather
they prefer to take suggestions from their family members. Women are less financially
literate as compared to that of men and usually rely on informal sources of finance.
Women are very much eager to learn about saving and planning of budget. Among
women 44% are interested in financial services but this is far less than that of men from
which 59.4% are interested in financial services. As compared to women, men rely more
on media to get financial information and has better access to the information while
women rely more on family members and relatives to have an access to financial
information and services, so that they can plan budget effectively and efficiently to
increase savings.
2.4 Media
Media falls under communication channels. Communication channels through which
news, entertainment, education, and data or promotional messages are disseminated.
Media includes every broadcasting and narrowcasting medium such as newspaper,
magazines, TV, radio, billboards, direct mail, telephone, fax, and internet
2.5 Types of media
Many options are there which allow communicating the message with targeted
audience. Selection of media type depends upon the targeted audience. Once the audience
is targeted then media type will also be decided to effectively deliver the message. It
would be obvious that medium will be the best one and most appropriate amongst
targeted audience.
Options of medium are as follows:
Press (includes newspapers, magazines, etc.)
Radio
Television
Web / Internet (Digital technology-superpower to be, current age life cannot be imagine
without internet and web).
2.6 Benefits of media

Media is very beneficial for the society as well as for the individuals too. Through
media one can be able to keep in touch with the rest of the world, can get information and
data regarding current affairs. Media is also benefiting others in getting literate.
While assessing benefits of media, the most prominent benefits of media are as
follows:
 Through media people stay in touch whether wherever they are.

 Media is expanding the world. As world of people is encompassed by limited boundaries
and geographic areas so media is the one who is enabling people to get information and
data beyond their geographic area.

 The benefits of media are also noted in the business community. It allows business
community to have a look on the business information and also on competitor’s
information to run their business effectively.

 Media enables business man to ensure the choice of the customers.
 Media can also be used to achieve national objectives.
2.7 Importance of media
Media is one of the independent pillars to save the country from sudden
slippage. Media gives a way to people’s perception and prioritize their thinking about
political, social, cultural and educational contents. Media also plays an important role in
shaping up the people’s behavior about different issues which are highlighted by the
media.
Media plays a significant role with the help of its central position holders e.g. editors,
news editors, and other journalists. They are the one who shapes the media agenda which
further becomes the public agenda after sometime.

Media is a very powerful tool which is used to make up the public’s mind in a
positive manner.
2.8 Media in Pakistan
According to Milton, "When complaints are freely heard, deeply considered,
and speedily reformed, then is the utmost bound of civil liberty attained, that wise men
look for."
The Pakistani media is an enthusiastic member of the new warrior clan of the 21st
century and despite belonging to war-torn country, is playing active role in keeping with
the demands of the modern times. When divergent views and cross questioning arises
significantly on national and social issues then it is the media who reflects and informs
public opinion and practically shares the view of highly literate people and experts of the
related fields.
The flow of information is the main ingredient which is increasing awareness, and
this flow of information is ensured by the media, electronic print, radio, cyber or internet.
Due to lack of information, which is provided by the media, society cannot go towards
betterment of the country as a whole.
Media has got new dimensions, new ways, great power and a very sharp ability of
transforming the present age into information explosion with the advent of technology.
Technological advancement has enabled the media to open its outlets in Pakistan. In
Pakistan people especially those living in the rural areas have very limited access to the
media, they don’t have any access to the cable and hence they are deprived of important
issues of the country.
In BBC Pakistan 2008 survey, 2016 people were surveyed in which 354 people were
from Sindh while 1105, 159, 398 people from Punjab, Baluchistan and Khyber Pakhtun
Khwa participated respectively. According to this survey 94% from Sindh, 86% from
Punjab, 65% from Baluchistan and 86% from Khyber Pakhtun Khwa had an access to the
state run T.V. In case of cable T.V or satellite dish 43% from Sindh, 20% from Punjab,
22% from Baluchistan, and 14% of Khyber Pakhtun Khwa people had an access while
91% from Sindh, 47% from Punjab, 74% from Baluchistan, 64% from Khyber Pakhtun
Khwa had an access to the radio.
People living in rural areas or those living in low income areas have access to the
Pakistan Television and Pakistan Television World only. While private channels are not
allowed to broad cast their transmission on national level.
2.9 Financial literacy and media:
Technological advancement has caused drastic changes in every aspect of life. With
other things it has also transformed the way of marketing, banking, insurance and
financial services. Availability of the T.V, radio, cable T.V and internet to a large number
of people has enabled the financial service providers to work efficiently.
T.V, radio, cable T.V and internet as a mean of communication has helped in
increasing awareness among the consumer and helped the providers to have an access to
a larger target market. It has also helped consumer in finding and selecting the suitable
financial products. Beside these benefits technology will be of greater use in case of
selecting financial products only and only if consumers have a basic knowledge about
financial products. In this case media can play a vital role in spreading financial literacy
among the people. Media has always proved to be an active and important source in
spreading knowledge to a large number of people. For developing countries with lower
literacy rates media can be an effective medium to educate the people.
Cohen & Nelson (2011) in their study, Financial Literacy: A Step For Clients
Towards Financial Inclusion suggest that class room or one to one setup can be very
effective at conveying the information about financial literacy but in order to convey it to
a large number of people effectively class room or one to one setup can be very
expensive, here the media can be very effective and inexpensive source. In Mexico, in US
consulates videos are being played on how to manage debt and foreign remittances. In
Uganda comic books about the benefits and advantages of the insurance have been
prepared for the potential insurance buyer. In El Salvador a radio program is broadcast on
the topics of saving, investment and debt management for the female entrepreneurs.
According to Morris L Wang (2001), “In a world of escalating financial complexity,
there is an increasing need for financial knowledge and at least basic financial skills.”
In the article, financial literacy learning in emerging markets: Agent-based
modeling, West (2012) has discussed that financial literacy is very much important for the
financial wellbeing of household. In his study he used an agent-based modeling to
determine the effect of the financial literacy program in developing countries conveyed
through a social network from the sources with different degrees of creditability. The
results showed that social networks are very much conscious about the creditability of the
source which is used to convey financial literacy to them. If financial education program
does not consider the background of the social network or ignore the creditability of the
source is neglected then this program may lead to failure.
In Pakistan a large number of people have got an access to media, so it can be used to
equip people with financial literacy and to inculcate confidence so that they can take their
financial decisions efficiently. In order to enable a large number of people to have an
access to the financial literacy Pakistani media can play an important role. The media
should simplify the financial terminologies and bring it to the front. This will increase the
financial literacy and public confidence.
Media can increase the effectiveness of financial literacy by providing the
information on how to prepare the budget, how to control spending and increase savings
and where and when to invest.
Hence it can be said that in Pakistan the responsibility of media is much more than
any media in the world, because Pakistan needs a big change and only media is now, as
much powerful. At present media is the only source which is easily accessible by all
walks of people through various electronic appliances i.e. TV, Radio, Internet, News
Papers and now mobile phones also used by people to be aware of events every time.
Chapter III
METHODOLOGY
This chapter covers the details of the methodology part of this research that is the
method of study of the researchers, selection of the population and sample, sampling
strategy and instrument used for the collection and analyses of the gathered data.
3.1 Procedure of the Study
Any authentic and reliable research depends upon the procedure adopted. In order to
achieve the objectives of the study the researcher adopted the following procedure.
3.2 Research Design
In this study, descriptive research method was used to define the characteristics of
the variables in the research i.e. financial literacy and media.
3.3 Population of the Study
Gay (1996) quoted, “a population would like the results of a study to be
generalizable”. The study was concerned with the effect of financial literacy on society
especially on households if spread through media. For this purpose conveniently
available heads of the household and housewives were taken to gather data.
3.4 Sample of the Study
Sample is a proportion of a population selected for observation and analysis. For this
research researchers selected 12 heads of the household and 12 housewives using
convenient sampling method.
3.5 Tool for Data Collection
The use of any instrument of research depends upon the nature of research. It was a
descriptive research which is a quantitative study. So, the questionnaire is the best
instrument for the data collection. Study was conducted in non-contrived study setting
with a cross sectional (one shot) questionnaire.
3.6 Data Collection
Data was collected by 12 head of the households and 12 housewives. Researchers
asked the questions themselves and marked it on questionnaire. Questions were about
basic household demographics and financial literacy.
3.7 Data Analysis
After collecting the data it was arranged and then analyzed.
3.8 Delimitation of the Study

The study was limited to Lahore city only. Because of the shortage of time and
resources the researcher was unable to conduct the study on a broader scale.
Chapter IV
DATA ANALYSIS AND INTERRETATION
This chapter deals with the data analysis and its interpretation. Data was collected
through questionnaire by the researchers themselves. Questions were asked from heads of
the household as well as housewives. The obtained data was then analyzed.
1. When asked about how much respondents are interested in financial matters
66% said that they are strongly interested in financial matters. When asked
from females 50% said that they are interested and remaining 50% said that
they are strongly interested.

2. In answer to the question whether they consider closely what is written or
said about financial, 66% said that they always consider it. From female
respondents, more response is given to the always with 50%.

3. When asked that do they get financial information through T.V, 66% of the
males agreed with it and 58% females are agreed with the statement.
4. In response to the question whether you get most of the financial information
from newspaper 33% of the males strongly agreed and other 33% agreed too.
Form female respondents same proportion 25% went with strongly agreed,
agreed and neither agreed nor disagreed with the statement.

5. In answer to the question whether you get most of the financial information
from your family members33% of the males agreed to it. In case of female
respondents 41% strongly agreed and similarly 41% agreed with this
statement.
6. When asked about savings 100% males of the sample said that they have
heard about it and also understand what saving is. From females 92% heard
and also understand what saving is?
7. When asked about investment seven 58% of the males strongly agreed with
the statement. When asked from females58% agreed with the statement.
8. When researcher asked the respondents whether they know very well about
the bank account that will best suit their needs at the time of opening the
account: 50% males were strongly agreed while other 50% agreed with the
statement. In case of females 41% disagreed with the statement.

9. When asked that whether the respondents have complete information
regarding insurance 50% agreed with the statement. In case of females 25%
were disagreed and similarly 25% went towards neither agreed nor disagreed,
with the statement.

10. 75% males of the sample said that they have heard and understand the online
transfer.66% of females heard about it but do not understand what online
transfer is.
11. 58% of the males and 42% of the females are interested and strongly
interested to know how to deal bank accounts respectively.

12. 66% of the males and 33% of the females are interested and uninterested to
be educated on loan respectively.
13. 50% males of the sample are interested, 33% females of the sample are
uninterested while other 33% females are interested too in getting education
on insurance covering assets.

14. 58% of the males and 41% of the females are interested to be educated about
insurance covering life.
15. In answer to the question whether respondents would like to be educated
about calculating the profit given by bank on their investment: same
proportion came to the different options e.g. 25% for the not interested,
interested and strongly interested. From females, 25% were not interested at
all, 25% were uninterested and 25% were strongly interested.
16. In making personal budget effective 58% of the males and 58% of the
females of the sample were strongly interested in learning it.

17. When asked about the interest in learning how to make household budget
effective 50% of the males and 50% of the females were strongly interested
and interested respectively.
18. 41% of the males make big decisions with their spouse and 25% females of
their sample make decision with the help of the head of the households and
with other family members.
19. When respondents were asked about whether they are interested in learning
about financial literacy: 58% of the male respondents and similarly 58% of
the female respondents interested in learning it.

20. In answer to the question through which form of media would respondents
prefer to get financial literacy: 58% of the males and 83% of the females
marked private cable channels.

21. When asked to which of the things respondents have an easy access: 58%
males and 83% females of sample voted for private cable channels.
CHAPTER V
Summary, Findings, Conclusions and Recommendations
5.1 Summary
Financial literacy helps the consumer to choose financial products that best suits their
financial needs. It helps them to understand the contracts before availing any financial
service. Financial literacy is about the consumer to keep himself inform about the
products he is going to buy and to understand the things written in the contract he is
going to sign. After the recent financial crisis developed countries have started to give
due consideration to the financial literacy as compared to that of developing countries. In
developed countries financial literacy deals with need of insurance, tax or credit cards
while in developing countries it deals with the concept of saving, investing, budgeting
and borrowing money. There are so many financial institutions in Pakistan but very few
people are aware of benefits provided by these institutions. As financial literacy enable
the people to fulfill their financial needs there is a dire need to spread it. In Pakistan the
best way to spread financial literacy is through electronic media. People who have got
sufficient financial literacy argue that now-a-days people are lagging far behind the
required level of the financial literacy due to which they cannot select financial products
and services which best suits their needs. Absence of financial literacy can be disastrous
for an individual as it can cause strain on the assets of the individual and on the
management of the money.

5.2 Findings
Men show a strong interest in financial matters as compared to that of women.
Similarly as compared to women men always consider closely whatever is written or said
about financial matters. Most of the men and women get most of the financial
information from T.V as compared to that of the newspaper and family members. As
compared to women men know much about saving, investment, insurance, online transfer
and the bank account that best suit their needs. Whereas in case of getting education
about how to deal bank account more women show strong interest as compared to men
who were only interested in learning it. The case was opposite where respondents were
offered with the chance of getting education about loan, insurance covering assets,
insurance covering life and method of calculating profit given by bank on investment in
which more men were interested as compared to women. In case of learning about how to
make personal budget effective men and women equally show their interest while for the
household budget women were more interested as compared to men. Most of the men
make their financial decision with their spouse as compared to women who make their
financial decisions either alone, with spouse, with other family members, with the head of
the household or even sometime don’t take their financial decisions themselves. Both
men and women were equally interested in getting financial literacy and getting it from
private cable channels as compared to radio and national channels but a small number
also showed their interest in getting financial literacy through newspaper. The result also
showed that more and more people have an easy access to the private cable channels and
then newspaper as compared to any other media.
5.3 Conclusion
From the findings it can be concluded that men show more interest in financial
matters as compared to women who were less interested in financial matters only due to
the lack of information about financial matters and how they can affect them financially.
Most of the men as well as women showed that they are not able to make their personal
as well as big financial decisions alone, most men preferred to make their financial
decision with spouse while women are more dependent on either spouse or the head of
the household in making their financial decisions.
5.4 Recommendations
Financial literacy being one of the most important components in the financial
wellbeing must be given due consideration and as it can be seen from the result that a
large number of people have an easy access to media so it can be used as a most efficient
tool to spread financial literacy. Most of the people have an easy access to the private
cable channels, newspapers and national channels so it is better to broadcast financial
literacy programs by using these types of media. This will help to increase the financial
inclusion which will further lead to the improved economy, reduction in poverty, better
opportunities and most importantly to the financial wellbeing. All these things
collectively will enable the poor to improve their financial condition by exploiting the
opportunities lying before them. Women must be given due consideration before
designing any kind of financial literacy program as women show strong interest towards
learning basic financial concept related to budgeting, dealing their bank accounts etc. this
will enable the women to take their financial decisions alone rather depending on their
family member.
References
Carolynne L J Mason and Richard M S Wilson. (November, 2000). Conceptualizing
Financial Literacy. Research Series, Paper 2000:7, ISBN 1 85901 168 3
Claessens, Stijn and Konstantinos Tzioumis. (May, 2006). Measuring firms’ access to
finance. World Bank manuscript.
Cohen Monique and Nelson Candace. (2011). Financial Literacy: A Step for Clients
towards Financial Inclusion. Prepared for the 2011 microcredit summit
campaign.
Everette M. Rogers (1966). Mass media exposure and modernization among Colombian
peasants. The Public Opinion Quarterly, Vol.29, no. 4, 614-624. Retrieved
from: www.jstore.org
George Gabarlavage. (2009). Financial Literacy: More Important Than Ever. The Journal
p.40-43.
Hung Angela A., Parker Andrew M., Yoong Joanne K. (September, 2009). Defining and
Measuring Financial Literacy. RAND Labor and Population working paper
series. WR-708
http://www.articlesbase.com/culture-articles/importance-of-media-in-pakistan-towards-
change-1879575.html
http://www.investopedia.com/terms/f/financial-literacy.asp#ixzz1nlYWTgU7
In Rural Pakistan, News Options Leave Little Room for Objectivity. Retrieved from,
www.audiencescapes.org.
Jason West (2012). Financial literacy learning in emerging markets: Agent-based
modeling. Griffith University. Discussion Paper, Finance. No. 2012-05
Johnston Hon. Donald J., (December, 2005). Importance of Financial Literacy in the
Global Economy. Keynote Address to the Financial Education Summit, Kuala
Lumpur.
Khan Arzak. (2010). Digital Television Age: A Policy Perspective from Pakistan.
Retrieved from: http://ssrn.com/abstract=1657768, SSRN-id1657768
Lewis Mandell and Linda Schmid Klein (2009). The Impact of Financial Literacy
Education on Subsequent Financial Behavior. Journal of Financial Counseling
and Planning Volume 20, Issue 1 2009. P.15-23.
Lusardi, A. & Tufano, P. (2008). Debt literacy, financial experiences, and over
indebtedness. Dartmouth Working Paper.
Martin Mathew. (June, 2007). A Literature Review on the Effectiveness of Financial
Education. Federal Reserve Bank of Richmond Working Paper No. 07-03. JEL
Codes: D12, D14. Retrieved from:
http://www.richmondfed.org/publications/economic_research/working_papers/i
ndex.cfm.
Moore, D. (2003). Survey of Financial Literacy in Washington State: Knowledge,
Behavior, Attitudes, and Experiences. Technical Report n. 03-39, Social and
Economic Sciences Research Center, Washington State University.

Miller Margaret, Godfrey Nicholas, Levesque Bruno & Evelyn Stark. (2009). Promoting
Access to Finance by Empowering Consumers. Retrieved From:
www.worldbank.org
National Council for Economic Education (NCEE) (2005). What American teens &adults
know about economics.
Norman A. S. (September, 2010). Importance of financial education in making informed
decision on spending. Journal of Economics and International Finance Vol.
2(10), pp. 199-207, October 2010. http://www.academicjournals.org/JEIF ISSN
2006-9812
OECD-US Treasury International Conference on Financial Education. (2008). Taking
Financial Literacy to the Next Level: Important Challenges and Promising
Solutions. VOLUME I - Keynote addresses, interventions and main policy
recommendations. Retrieved from: www.financial-education.org.
Parker, A.M., Yoong, J., Bruine de Bruin, W., Willis, R. (2008, September). (Over)
confidence and economic behavior. Paper presented at the Conference on
Understanding Economic Decision-Making. Jackson, WY.
Pinto Laura, Coulson Elizabeth. (2011) Social Justice and the Gender Politics of
Financial Literacy Education. Journal of the Canadian Association for
Curriculum Studies Volume 9, pp 55-78, Number 2, 2011. 34299-36529-2-PB.
Sandra Braunstein and Carolyn Welch. (2002). Financial Literacy: An Overview of
Practice, Research, and Policy. Federal Reserve Bulletin. (2002, November)
William G. Gale and Ruth Levine. (October, 2010). Financial Literacy: What Works?
How Could It Be More Effective?

Appendix
QUESTIONNAIRE
Name: _____________________ Gender oM oF
1. How much are you interested in financial matters?
a) Not interested at all b) Uninterested c) Neither d) Interested
e) Strongly interested
2. Do you consider closely, what is written or said about financial matters?
a) Never b) Sometimes c) Often d) Always
3. Do you get most of financial information through T.V channels?
a) Strongly Agree b) Agree c) Neither d) Disagree
e) Strongly disagree
4. Do you get most of financial assistance through newspapers?

5. Do you get most of the financial information from your family members?
6. The word “Saving” is _______ by you.

a) Never heard b) Heard but not understand c) Heard and understand
7. You know very well about what investment means
8. You know very well about the bank account will best suit your needs at the time of
opening?
9. You have complete information regarding insurance

10. One of the features of financial service is “online transfer”, have you heard about it?
a) Never heard b) Heard but not understand c) Heard and understand
11. Would you like to be educated on how to deal with your bank account?
12. Do you want to know about the loan?
13. Do you want to be educated about insurance covering assets?
14. Do you want to be educated about insurance covering life?
15. Would you like to be educated about calculating the profit given by bank on your
investments?
16. Are you interested in learning how to make personal budget effectively?
17. Are you interested in learning how to make household budget effectively?
18. With whom do you consult while making big financial decision particularly decisions
regarding personal purchasing? SINGLE MENTION ONLY

a) Alone
b) With spouse
c) With other family member
d) Head of the household
e) Don’t make financial decisions.
19. Are you interested to learn about financial literacy?
20. Through which form of media, would you prefer to get financial literacy?
a) Radio
b) Newspaper
c) Private Cable channels
d) National channels (PTV)
21. To which of the following things you have an easy access?
a) Radio
b) Newspaper
c) Private Cable channels
d) National channels (PTV)

Financial Literacy Through Media

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Financial Literacy Through Media

Загружено:

Авторское право:

Доступные форматы

Financial literacy through media 1

Financial Literacy and Spreading It through Media

Submitted By: ABNAS SALEEM, ANILA JAMIL

Supervisor: MR. MUHAMMAD IDREES

Hailey College of Banking & Finance

University of the Punjab, Lahore

thoughts and co-operative people to enable us achieve this goal.

encouragement, motivation, patience, understanding, love and prayers which acted as a

catalyst in our academic life.

which would have been impossible without them.

We are extremely grateful to Almighty Allah the

3.3 Population of the Study..………………………………… ………...24

future full of financial troubles.

current account at a bank or financial institution. Nowadays consumers and investors

comprehensive knowledge of credit and the impact of simple or compounding interest

in literature-financial literacy; financial education and financial capability these three

products to the target market.

where greater attention is given to this concept as compared to those of developing

developing or underdeveloped economies. In developed economies financial literacy may

matters related to borrowing.

In Pakistan business of banking and financial institution is rapidly growing and as

Financial literacy is related to the understanding and having knowledge of financial

literacy among people.

financial literacy on a socio-economic level to a smaller audience. For a smaller audience

about saving, investments, borrowings and budgeting or it can be used to broadcast

financial information can be spread through brochures, billboards and newspapers.

1.2 Statement of the problem

What is the role of media in promoting Financial Literacy in Pakistan?

1.3 Significance of the study

their daily lives such as budgeting etc.

spreading financial literacy.

1.4 Objective of the study

influence the others and has a significant impact in individuals’ lives.

1.5 Research questions

The following research questions will be used as a guide to the study:

 Why is financial literacy important?

 How can it be achieved?

 How financially literate are we?

 Is financial literacy effective?

 Can media play efficient and effective role in financial literacy?

 Can this financial literacy advantageous for the economy?

such as economic crisis, political matters and glamour world?

was unable to conduct the study on a broader scale.

1.8 Definition of major terms

Financial Literacy: According to the U.S. Government Accountability Office

children’ education and how to tackle the job loss.

2.1 Review of literature

In the paper (Over)confidence and economic behavior, while anticipating

performance on conjectural investment project Parker, Yoong, Bruine de Bruin, and

general knowledge but in reality it is basic knowledge of finance which outperformed

According to National Council on Economic Education (2005), financial literacy is

the basic economics terms.

effective decisions regarding wide range of financial products available in financial

information necessary to make decisions with an awareness of the likely financial

2.2 Importance of Financial literacy

investments, budgeting and utilization of credit wisely.

In the article Financial Literacy: An overview of practice, research and policies

due to which saving for future becomes next to impossible.

Financial literacy enables the individuals to assess their financial needs

have little or no knowledge of financial literacy make improvised decisions which in

return can be disastrous for their financial wellbeing.

they cannot afford.

and specifically how to use knowledge of simple and compound interest.