The relationship between financial literacy and actual financial decision quality is studied empirically

The gap

Evidence profile

Sourced from the recommendations and future work and synthesized of the source papers, classified as general, spanning 3 journals.

Supporting evidence — 3 representative gaps

• A Study on Financial Literacy and its Impact on Decision-Making Capability among the Faculty of Paro College of Education (2026) · Journal of Applied Engineering Technology and Management · doi

  Based on the findings of this study, the following recommendation is proposed: The finding shows that, the overall level of financial literacy amongst the respondent as moderate. Further the study indicated that respondents have low level of financial behaviors. From the three financial behaviors, saving, spending and investment, spending behavior is the lowest. Therefore, to improve the overall financial literacy of the respondents and financial behaviors, financial literacy programs and awareness should be conducted to make respondents more financially literate. Further financial literacy programs should not only aim to increase their knowledge but also emphasize the development of favorable financial practices and attitudes.

  generalrecommendations
  Keywords: financial literacy respondents behaviors overall level further spending programs based following recommendation proposed finding shows
• Inclusive Financial Literacy for Deaf People: Accessibility Analysis of Game-Based Financial Education Media (2026) · Journal of Business Social and Technology · doi

  From a behavioral accounting perspective, the results of this study show that the way financial information is presented can influence individuals' understanding processes and economic decision-making. Financial literacy is not only about the ability to know financial concepts but also about the ability to interpret information, assess consequences, and use that information as a basis for making decisions. Therefore, financial education media needs to be designed by considering how users receive, process, and respond to financial information. In Cash Hero, users learn through financial decision-making processes accompanied by direct consequences within the game. Each decision taken impacts the player's financial condition, such as cash flow, savings, protection, investment, and net worth. This mechanism shows that educational games can help users understand the relationship between financial actions and their impact on financial conditions. In the behavioral accounting context, this is relevant because users not only receive information but also experience the processes of assessment, alternative selection, and evaluation of decision consequences. The financial literacy mapping results showing the majority of respondents in the moderate category also reinforce the importance of inclusive educational media. This condition shows that respondents already have basic financial understanding but still require learning media that can strengthen understanding more evenly. In other words, the issue of financial literacy for deaf individuals cannot be understood merely as a problem of lack of knowledge but also as a problem of access to appropriate learning media. This expands the understanding in the financial literacy literature that financial inclusion is not sufficient by merely providing access to financial services but must also ensure that financial information can be understood by user groups with different communication needs. The design thinking approach in this study also provides an important contribution because the media development process was conducted based on actual user needs. Patrício et al. (2021) emphasize that design thinking can support innovation through a user-needs-oriented process (Bhatt & Chakrabarti, 2022). In this study, the involvement of deaf individuals in the needs identification, development, and prototype evaluation processes made Cash Hero not only oriented toward financial material content but also toward user experience. This shows that the design of inclusive financial education media needs to be built through a participatory, iterative, and user-centered process. Thus, this study addresses the gap in the financial literacy literature by showing that educational media accessibil

  generalfuture work
  Keywords: financial media information needs literacy user understanding processes decision users process individuals making consequences cash
• Financial Literacy: Its Paradoxical Effect on MSME Financial Management in the Digital Era (2026) · Advances in Taxation Research · doi

  The relationship between financial literacy and actual financial decision quality is studied empirically (showing literacy does not guarantee sound behavior), but no study investigates whether specific cognitive distortions—such as mental accounting, loss aversion, or availability bias—explain why higher financial literacy sometimes fails to improve financial management outcomes, particularly in emerging-economy contexts.

  generalsynthesizedevidence 5/5
  Keywords: relationship between financial literacy actual decision quality studied

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