Factors contributing to financial literacy levels among a migrant group

Abstract

Purpose The purpose of this paper is to examine whether differences in the characteristics, financial knowledge and financial attitudes of a migrant group exert significant influence on the likelihood of their financial literacy level. Design/methodology/approach A multiple discriminant analysis incorporating post-estimation analyses is employed, where the financial literacy level is used to identify a priori clusters. Findings The results showed that a significant discriminant function could be estimated to classify the study cohort into three financial literacy groupings. The paper concludes with recommendations for future research to address financial literacy, taking into account differences in characteristics, financial attitudes and financial knowledge of different cohort groups. Research limitations/implications Although the research targets Vietnamese migrants, no claims can be made regarding the representation of other migrant groups as a whole. The research has implications with respect to programs to improve financial literacy levels of those most at need. This paper provides recommendations for future research in this area. Originality/value The paper provides one of the few studies of an Australian migrant cohort with respect to financial literacy. The study utilises a multiple discriminant analysis incorporating post-estimation analysis to examine, and compare, the factors that influence a person’s financial literacy level.