Proceedings of The 6th World Conference on Social Sciences and Humanities
Year: 2023
DOI: https://www.doi.org/10.33422/6th.shconf.2023.06.130
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Social Trading and Behavioral Finance: The Bridge Toward Financial Education
Dr. Ardian Durmishi, Prof.As. Dr. Lindita Durmishi
ABSTRACT:
The aims of this paper are twofold: the first is to explain how financial education has become an essential element in everyday life and how society is now increasingly pushing towards trading platforms where you can both learn financial concepts and see how other traders, or your friends behave. A second aim relates to the exploration of social trading and behavioral finance toward better financial education.
The method of this study is mixed, with quantitative data analyzed through the econometric model and nonlinear regression for dichotomous variables. A survey was conducted to understand the influence of financial literacy toward financial behavior, the level of financial education of the interviewee, and his propensity towards social trading. A further qualitative analysis was conducted for financial behavior constructs and the social impact of financial education. The sample for the current research was 300 people, students at different university branches who use social media.
The resultsrevealed there is a tendency for respondents to react at the same time and in the same way to the financial knowledge in financial literacy (M = 1.980; SD = 2.4); financial behavior (M = 1.67; SD = 2.00); financial attitudes (M = 1.987; SD = 1.967); and degree of financial education (M = 2.4; SD = 2.65). No significant differences in terms of cultural impact between the students.From the examination of the variables that influence the extent of financial literacy among students,it was revealed an inverse correlation between schooling and literacy, a positive relationship between age and financial literacy, a weak connection between employment and financial literacy and a weak connection between status and financial literacy.
The conclusions of the present research are in line with many studies of microfinance that describe the influence that financial literacy has in decision-making.
The authors would recommend, therefore, understanding, through more targeted programs, the biases that characterize the subjects and how these biases influence the decision to start or not to start social trading.
keywords: financial literacy, financial education,financial behavior, decision-making,influence