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Improving Financial Literacy and Supporting Financial Decisions: Developing a Personalized Configurator

Author

Listed:
  • Sara Shafiee

    (Technical University of Denmark)

  • Linda L. Zhang

    (Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management)

  • Kourosh Marjani Rasmussen

    (Technical University of Denmark)

Abstract

Financial literacy is vital for individuals to understand their economic life cycles and make suitable financial decisions. Due to the increasing complexities, the available financial systems lack the capacity to better educate individuals to facilitate informed financial decision-making. In this study, we capitalize on the configuration principles for creating customized products and services and develop a personalized financial configurator, aiming to better educate individuals for their pension-related decision-making. The personalized financial configurator is developed based on a three-tier distributed system architecture and can generate diverse personalized outputs, e.g., future financial asset changes, future investment potentials for retirement, and recommendations. The outputs together with recommendations facilitate individuals to make informed pension-related decisions, e.g., suitable retirement ages and suitable investment strategies. Hence, the results demonstrated that the personalized financial configurator can better educate individuals by providing personalized data and information, thus facilitating their informed pension-related decision-making.

Suggested Citation

  • Sara Shafiee & Linda L. Zhang & Kourosh Marjani Rasmussen, 2024. "Improving Financial Literacy and Supporting Financial Decisions: Developing a Personalized Configurator," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14256-14285, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01651-9
    DOI: 10.1007/s13132-023-01651-9
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    References listed on IDEAS

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