Factors Influencing Financial Literacy Levels: A Case Study of Farmers in Dokkhamtai, Phayao

Abstract

The purposes of this research are to evaluate financial literacy levels, and investigate factors affecting the financial literacy level, among farmers in Dokkhamtai, Phayao. The researchers use a questionnaire as a research instrument. The questionnaire consists of three parts; 1) demographic information, 2) financial information, and 3) financial literacy, which consists of three components; financial knowledge, financial behaviors, and financial attitudes. The sample size is 369 respondents, which were gathered through accident sampling. Statistical methods were tested through independent sample t-test, one-way ANOVA, and multiple regression analysis.

                   In summary, the results showed that the overall financial literacy score—obtained by combining the survey results of knowledge, behavior and attitudes—is high. Interestingly, most respondents could not answer questions about the time-value of money, compound rate of return, inflation, and diversification. We also found most respondents have no financial planning for the future. Lastly, from a multiple regression analysis, it was clear that four factors affected the financial literacy level of respondents; education level, area of farmland, income, and expenses.