The Dynamics From Financial Literacy to Economic Self-Sufficiency Among the Economically Disadvantaged Youths in South Korea: Applying the Knowledge, Attitude, and Behaviors Model

Abstract

This study aims to examine the dynamics from financial knowledge, financial attitudes, and financial behaviors to economic self-sufficiency using data of economically disadvantaged youths aged 15 to 39 receiving public assistance. The study hypothesizes and empirically investigates the pathways from financial knowledge and attitudes to economic self-sufficiency mediated by financial behaviors based on the knowledge, attitude, and behaviors model. The findings from 866 Korean economically disadvantaged youths suggest that financial knowledge and attitude initiate financial behavior and eventually contribute to economic self-sufficiency. These results reveal that financial knowledge and proper financial attitude are crucial for economic self-sufficiency when accompanied by behaviors.