Boosting Financial Literacy: The Roles to Enhance Quality of Life

Abstract

The focus of this study was on the effect of financial literacy on enhancing people’s quality of life, based on three aspects; financial knowledge, financial attitude, and financial behavior. The questionnaire used in data collection was divided into two main parts, one evaluating the respondents’ financial literacy and the other evaluating their quality of life. The first part was adapted from surveys of financial literacy conducted by the OECD and the BOT. The 26 questions used to evaluate quality of life were adopted from the World Health Organization’s Quality of Life assessment for Thailand (WHOQOL-BREF-THAI). The sample group was selected using non-probability convenience sampling which applies no selection criteria in the sampling and mainly relies on the cooperation of the respondents, all of whom live in Trang Province. The survey was administered to 1,310 people aging from 15 to 65, who answered the questionnaire. Analysis of the data consisted of structural equation modeling. The study found that levels of financial literacy affect people’s quality of life. The most influential component was behavior supported by the right attitude. Another interesting finding was that a higher level of financial knowledge does not automatically help to improve people’s quality of life. The government can take action to raise the level of financial literacy, but people are also required to change their attitudes to the point that they also transform their behavior. Moreover, people need to thoroughly understand and effectively apply the knowledge gained.