A University of Hong Kong Capstone Project
Personal Finance
Financial literacy can be defined as an individual's ability to make sound and informed decisions on their own wealth management and the efficient management of their financial resources (Nicolini, 2013; Lyons et al., 2020; Xiao, 2020).
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Broadly, it encompasses both the theoretical knowledge and the application of that knowledge, from simple aspects of daily money management (expenditures, savings, borrowing) to more complex forms of financial planning such as investment (stocks, bonds, insurance).
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Why is it important to be financially literate?
Financial literacy can improve economic wellbeing, which is a key aspect of life.
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Financial Literacy Curricula in Asia
Since the early 2010s, many Asian countries and regions have begun developing financial literacy programmes dedicated to primary and secondary students (Xiao, 2020). A financial literacy curriculum should be able to cover essential topics but also be broad and flexible, reflecting the current economic state and market trend of its country. To meet these needs, this website provides a brief review of personal management tools, key terms and principles and also direct attention towards green finance, which has been one of the largest financial/investment market change in the past five years, not only in Hong Kong but also worldwide (Fatica & Panzica, 2020; Krosinsky, 2020).
Personal Finance Glossary
To familiarize yourself with common financial terms, take a look at this short glossary. It covers a list of terms, mainly focusing on the types of investment products, such as stocks, bonds and investment funds. If you want to know more about a specific product, links will be made available at the end of each definition, redirecting you to a resource which covers the item in greater depth.
How to Start Planning as a Student
Not everybody has access to proper financial literacy education within their school curriculum, not only in Hong Kong, but worldwide (OECD, 2013; Investor Education Centre, 2018). Within a demographic set, millennials have been shown to have the weakest financial literacy (Zhu & Chou, 2020).
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Students who are about to enter the job market should know how to invest and save, in order to achieve short term and long-term goals (such as going travelling or eventually buying a home). This page will introduce basic financial concepts and redirect the user to further reading in order to deepen their knowledge on the subject matter.
References
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Fatica, S. & Panzica, R. (2020) JRC Technical Report: Green Bonds as a tool against climate change? [pdf] Luxembourg: Publication Office of the European Union. Available at: https://ec.europa.eu/jrc/communities/sites/jrccties/files/jrc121894_green_bonds_as_a_tool_against_climate_change_final_tr.pdf[Accessed 3 February 2021].
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Krosinsky, C. (2020) Modern China: Financial Cooperation for Solving Sustainability Challenges. [Online]. SpringerLink. Available at: https://link-springer-com.eproxy.lib.hku.hk/book/10.1007%2F978-3-030-39204-8
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Lyons, A. et al. (2020) Building financial resilience through financial and digital literacy in south Asia and sub-Saharan Africa. SSRN. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3496562
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Nicolini, G., Cude, B.J. & Chatterjee, S. (2013) Financial literacy: A comparative study across four countries. International Journal of Consumer Studies, 37(6), 689-705. Wiley Online Library. [Accessed 3 February 2021].
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Xiao, J.J. (2020) Financial literacy in Asia: a scoping review. SSRN. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3743345
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Zhu, A.Y.F. & Chou, K.L. (2020) Financial Literacy Among Hong Kong’s Chinese Adolescents: Testing the Validity of a Scale and Evaluating Two Conceptual Models. Youth & Society, 52(4), 548-573. [Accessed 3 February 2021].