I doing my Ph.D. I working on secondary data, financial literacy is one of mediating variables of my research work. most the studies use 1st hand data i.e. primary data based on questionair for financial literacy. but it is difficule to use the qustionair base data in time series research. please suggest some workable suggestion on the issue.
Alireza Moradi
Educational Attainment: Use the educational level of individuals or households as a proxy for financial literacy. Generally, higher education levels correlate with better financial knowledge and decision-making skills. Income Levels: Income can be an indirect indicator of financial literacy. People with higher incomes might be more financially literate due to better exposure to financial concepts and decisions. Financial Inclusion: Measure the extent to which individuals or households have access to formal financial services, such as banks and insurance. Those with higher financial inclusion are likely to have a certain degree of financial literacy. Investment Behavior: Analyze investment patterns, such as the frequency and types of investments made by individuals, as it may reflect their financial knowledge and awareness. Debt Management: Assess how individuals or households manage debt, including credit card usage, loan repayment behavior, and debt-to-income ratios, which could indicate their financial literacy. Financial Decision-Making: Explore decision-making processes related to financial matters, such as budgeting, saving, and borrowing, as these can provide insights into financial literacy. Financial Knowledge Tests: Although you mentioned that it might be challenging to use questionnaire-based data, some secondary datasets might include financial knowledge assessments. If available, these could serve as a more direct proxy for financial literacy. Digital Financial Services Usage: With the increasing prevalence of digital finance, analyzing how individuals utilize digital financial services might offer some insights into their financial literacy.
Here are some workable suggestions for proxy variables to financial literacy:
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