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立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
CHAPTER 7
PROCESS; ANALYSIS; FURTHER IMPLEMENTATION
7.1 Introduction
The purpose of this study is to provide an examination of women’s financial literacy proficiency in Taipei. The study aims to understand the extent to which these women are financially literate decision-makers. Given their current roles in their families and society, the researcher hopes to better grasp how these women can become more informed and effective at making financial decisions. This chapter discusses the data that was generated through three stages of research, including interviews with women in Taipei and the analysis of the interviews.
This process yielded many results, chiefly the proposition that women in Taipei need a better understanding of basic financial knowledge and that this lack of knowledge is also affecting future economic participants as the transmission of misinformation or lack of information is being modeled for their children.
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
DOI:10.6814/DIS.NCCU.IDAS.001.2019.A07
Figure 15 on the following page offers a comprehensive look at the process used for this research study. Section 7.2 provides greater detail into the researcher’s roles and decisions initiated throughout the various processes of this study. The analysis of the interviews can be found in Section 7.3. The interview transcripts can be found in Appendix B.
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
Figure 15. Flow-Chart Demonstrating the Stages and Their Impact on Research Design
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When dealing with populations of people, each with their own unique circumstances and bits of knowledge, it is significant for a researcher to design a system that is at once both thorough in its evaluation of the individuals and open enough so as to not accidentally manipulate factors and appearances.
For this purpose, the first stage of analysis included the assessment of the potential participants in their ability to converse about the subject matter and if they felt comfortable opening up and sharing intimate details about themselves, their spouses, and their families. The researcher began to collect initial and essential background research knowledge and engage in non-recorded conversations to assess language and willingness of potential participants, in the hopes of establishing open and clear lines of communication. This was a lengthy stage as trust is not built overnight. The fact that financial matters were going to be discussed made many hesitant to talk with the researcher and the fact that what they would reveal was going to be judged in a sense by people who did not “live a day in their shoes” made the need for trust and the promise of absolute anonymity crucial. While the potential participants were capable of having conversations in English, their comfort level in discussing something that is not often discussed in a second language played a factor in their willingness. It was only upon many promises of complete anonymity that the potential participants who displayed adequate English skills were willing to be interviewed. Many coffees, cakes, and small, light conversations were schedule and completed in order to facilitate the trust that was needed to move to Stage Two.
The second stage of analysis included two parts. The actual conducting of interviews took place in Part A. The fact that the interview questions were intentionally open-ended made it hard to determine at first how long the interview process would take, so it made the first few interviews difficult to schedule since the researcher was unable to estimate the necessary time it would take to conduct the interview. Selected participants also had very limited time to take off from work, so scheduling interviews was a challenge. It was noticed that once the interview had started and a few basic demographic questions were asked and successfully answered, the participants would become more at ease and feel freer to answer. Since the interview questions touched
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sometimes require the participant to regather herself before continuing. The process for some seemed cathartic, while for others, it seemed to be a revelation of the past they were trying to run from. The fact that these participants were willing to share their hopes and dreams and also highlight weaknesses in themselves and their family members further shows that Part A would not have occurred if the groundwork for trust had not been laid first in Stage 1.Upon completing the interviews in Part A, a follow-up Part B was needed to examine the hiring and training process of the respondents in order to understand more fully the supplemental knowledge they were receiving through their workplace that might have had an impact on the skill sets of the participants being interviewed or insights into their financial responsibilities and decision-making practices in the workplace. This is merely to provide some sense of context between all of the participants and to account for the cross-cultural nature of this study. It was found through interviews with supervisors and upper management that the respondents were all trained in business and educational English, taught budgeting for businesses, sales and accounting, and given training in the latest educational practices. In order for the respondents to successfully accomplish their job, they were given supplemental trainings that the researcher acknowledges could also influence their financial knowledge, but it should also be noted that the supplemental training was more related to business than personal finances. This supplemental knowledge is not always a part of all buxiban cultures. Further, the researcher’s intention in making this Part B of Stage 2 rather than Part A was to maintain neutrality during the initial interview process in Part A, hoping to lessen the chances of slanting questions toward background knowledge of this particular buxiban context.
Ultimately, this multi-stage process yielded the final results of the study. In Stage 3, words and phrases used by the respondents, sentiments they expressed, and explicit information given by the respondent were analyzed in order to see if any patterns emerged. In order to distinguish any pertinent patterns, the researcher utilized five indicators24 to analyze the data from the interviews.
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The intent of the researcher was to provide an open space for the participants to respond to questions relating to their experiences with finances and basic financial knowledge.
The researcher sought to be a conscientious and engaged listener only. After the ten interviews were completed and transcribed, the researcher carefully assessed the interviews for five areas useful for indicating financial literacy beliefs, attitudes, experiences, and knowledge. The five indicators were word choice patterns; future financial goals; level of understanding; exposure to financial literacy and experience;
and connotation.25
It can be difficult to dissect the human experience into various indicators as so often they are interconnected or overlapping; the researcher attempted to put the example into its strongest indicator, but there are times when the same example was utilized to assess another indicator. Further, the researcher took the position that the women interviewed were able to make financial decisions (this was demonstrated in the interviews themselves), even if they did not know about the concept of financial literacy or believe in their ability to execute financial decisions. The analysis yielded strong reminders of this as the women explain the financial choices they make on a daily basis. They were all capable women who make choices based on their understandings and life experiences. For the most, this experience was the first time these women had ever reflected upon their choices as financial decision-makers.
Although the researcher hopes that these women will have more contemplation over their choices and financial knowledge in the future, the past has unfortunately indicated that this is probably unlikely without further provocation.
7.3.1 Indicator 1: Word Choice Patterns
Though the world of financial literacy would appear to be all about numbers, in order to acquire proficiency in personal resource management, a specific language of
25 The five indicators were discussed in more depth in Section 4.4.
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financial decision-making must be learned first. This language can either be caught as a mother tongue or taught as a specific course of study. The vocabulary of the language of financial literacy is built just as in other disciplines, from simple words and phrases to more complex ideas. If this language of financial literacy is included in education from an early age, from parents or teachers, the natural development of the concepts predisposes the individual to embrace the words and phrases in a positive way and feel empowered to use the concepts. As the complexity of terms progresses, the individual is empowered to test and verify the financial concepts. This gradual use and practice predicts a skill and comfort using key words in financial discussion.
To better evaluate participants’ financial literacy some key words and phrases were identified in the interviews. These words or terms were not defined for the participants before the interview, nor were they prompted to use specific words. The questions were open-ended so that participants would use words they were comfortable with and not use words they did not understand. The findings are interesting not only for what words the interviews contained, but also for what words or phrases the interviews consistently omitted.
Savings
The one word most consistently used by respondents in the interview is the word ‘save’
or ‘savings.’ This word was used in interviews by every single respondent. This is an indicator that saving money is a concept well enforced in the mind of each respondent.
Even though this word is used consistently and correctly, it is interesting to note the varied opinions expressed about saving money.
First, all of the respondents defined what savings meant to them, mostly varying in their connection to a time or action. Several respondents were, in fact, saving some from month to month, but it was more a nagging thought, or whatever money was left over after expenses, rather than a planned amount. One respondent saved a bit from each paycheck plus what she received in red envelopes26 from grandparents. One respondent’s mother had stressed the importance of saving money while another’s father had instructed her to “spend it all while you can!” Interestingly, one respondent had learned that “only the poor save money.” These references were all about money
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put aside, not money being spent. The word ‘compare’ as in ‘comparison shopping’
was used by a few to indicate an interest in spending less to save money. In this study the respondents interspersed the interview discussion with talk about saving money and savings. It appears that modern advertising strategies have been effective in convincing customers from a money saving culture that saving money on a purchase is equal to the ideas of traditional saving.
Further, most respondents used the term ‘savings’ to classify members of their family, either as savers or spenders. Those associated with savers were considered more financially savvy and better money managers. When talking about the act of saving, words such as ‘disciplined,’ ‘balance,’ and ‘protect’ gave context to the ways in which the respondents rationalized savings or saving behavior. A few mentioned it being a necessity, it being something that they are trying to, or it being something that they did some, so as to indicate that the behavior might not be habitual but was not always forgotten. No advanced concepts of savings were mentioned or alluded to during the interviews. Most never mentioned where their savings was placed or if they ever casually touched it.
Credit Card; Debit Card; Cash
All respondents but one used the words ‘credit card.’ They knew what it was, they knew when they were using it, and a few expressed real cautions over the dangers of overuse.
Interestingly, none mentioned the fact that interest is charged on credit card purchases.
There was no mention of key terms like compound interest, late charge, revolving charge, minimum payment, percent interest, or grace period. No one mentioned accrued travel perks or switching account balances to one with lower interest. Only one respondent used the term ‘credit score’ in any context.
Only two respondents mentioned ‘debit cards.’ Most respondents freely used the word ‘cash’ to refer to currency. The one respondent that consistently used the word
‘money’ instead of ‘cash’ was born in South Africa and lived there for half of her life.
This may suggest a cultural difference in terminology. Another respondent chose the word ‘hurt’ to refer to times she had to physically use large amounts of cash to make a
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purchase; she preferred to use credit cards for any purchase above her self-imposed limit of $5000 New Taiwanese Dollars (NTD).27
Budget
The interviewer used the word ‘budget’ in at least one question, and most of the respondents picked up on that word being important. The ‘budget’ methods discussed by the respondents ranged from “paying the bills first” to submitting to someone else’s budget plan. It is worth mentioning that the term ‘pay’ was used for almost any transaction in which money was given away (i.e. pay bills, pay parents, pay school, pay rent, etc). Some respondents even repeated the word several times back to back in order to emphasize the flow of money.
It was rare to hear phrases like ‘use money,’ ‘salary,’ ‘income,’ ‘paycheck,’
‘allowance,’ or ‘give/gift.’ Further, the definition of a budget seemed to only include things that were ‘needed’ or ‘necessary.’ Anything that was ‘wanted’ or ‘fun’ seemed to be factored outside the budget. This separation is distinctive because traditionally a budget might include unnecessary items28 within a certain limit or threshold. In the interviews, there were no places within the budgets for including thresholds on unnecessary items. Only after meeting a budget, could the remaining balance be used towards these unnecessary expenditures, such as dining out, clothing, and drink stand purchases.
Insurance
There were seven instances in which the term ‘insurance’ was used. All seven of those times took on different meanings. One used it to refer to a choice in a game similar to
“The Game of Life” that was played during a college seminar. Two of the instances referred to eventually needing or having already purchased life insurance for aging
27 At the time of this study, the exchange rate was $1 USD at $29.91 NTD, making $5000 NTD a value of $167.19 USD.
28 As established by the respondents, this study will place any expenditures not necessary for ensuring life, transportation, or rent as unnecessary items. These include, but are not limited to, outings,
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parents and a new son, respectively. Another used insurance as indicating a fall-back plan by secretly saving for her daughter in case of an emergency situation; thus, having the insurance or peace of mind that comes with knowing she could protect her daughter in negative life experiences. Still another respondent used insurance quite confusingly when she mentioned she did a bit of insurance because she invested. One respondent only mentioned insurance when discussing a friend employed in an insurance business to whom she sometimes goes for advice.
Finally, only one respondent discussed insurance in terms of health insurance.
Taiwan has subsidized national healthcare for all citizens and legal residents. It is impressive that only one participant, out of ten, mentioned the health care system. The system largely affects the stability of those living in Taiwan as most do not have to worry about unexpectedly experiencing a medical emergency without a way to afford the medical costs. In effect, the health care system is a sort of insurance already built into the livelihoods of all residents since birth or legal residency. The healthcare system also applies to both Western medicine as well as traditional Chinese medicine, with most doctor visits starting at $150 NTD.29
Lastly, it appeared that most respondents lived with families or rented an apartment. There was no mention of insurance for privately-owned houses/apartments or the lack of insurance due to leasing properties from landlords. Some respondents mentioned a goal of saving for a house, but never mentioned saving or the factoring in of insurances on their homes. Geographically, Taiwan has serious earthquakes, flooding, and typhoons. Housing insurance is a costly necessity.
Debt; Up Front, Right Away, All of It; Investing, Stocks, Stock Markets
Half of the people interviewed used the word ‘debt.’ Nobody seemed to like it and they worked hard to avoid it. Generally, the concept was to only allow debt for a house or education. No one however talked about debt management, debt assignment, or opportunity costs.
The words ‘investing’ and ‘stocks’ or ‘stock market’ were used by only four out of ten respondents even though at least one interview question specifically included
29 At the time of this study, the exchange rate was $1 USD at $29.91 NTD, making $150 NTD a value of $5.02 USD.
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國立 政 治 大 學
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these words. So, hearing the word in a question did not illicit discussion in these terms for most respondents. Of the four that did mention investments, one was too afraid of failure to try, two enjoyed the financial prowess of other family members to invest, and only one was willing to take a class or seminar to learn more about investments. This is in stark contrast to the observation that every single respondent talked about ‘saving.’
Reward; Value; Professional; Position; The Real World
It should be noted that the words ‘reward,’ ‘value,’ ‘professional,’ ‘position (in society),’ and ‘the real world’ came up when discussing the views on and power of money. While this alludes to a certain connotation on the concept of money by the respondents, it is important to distinguish the sense of empowerment found behind the particular choice of these words.
That Sort of Thing; Everything that Comes Along with Having; That is Not My Part; I’m Not Really into It
A common response to financial concepts always seemed to show that the respondents viewed this information and behavior as outside their daily financial realm. They would use phrases such as ‘that sort of thing’ or ‘(insurance) and everything that comes along with having.’ Other phrases indicated that the respondents themselves were not connected to these financial concepts as seen through ‘that is not my part’ or ‘I’m not really into it.’ Any financial concept not fully developed in the respondents’ minds were placed beyond the boundaries of things necessary for them to concern themselves with, creating a sort of disconnect and effectively shutting down that line of questioning.
Risky
Another striking word choice was the reliance on the term ‘risky’ when discussing any financial behavior that they did not participate in. Recalling that the extent of many of their experiences related to solely paying or saving, risky seems to be an unusually
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that an individual has weighed the potential gains and losses of an endeavor, but no
that an individual has weighed the potential gains and losses of an endeavor, but no