Money matters: Exploring the link between financial literacy and remittances among mongolian migrants in japan

This study examines the determinants of financial literacy and their effects on remittances among Mongolian migrants in Japan. Using primary surveys targeting Mongolian migrants in Japan and their families staying in Mongolia, the financial literacy of migrants was measured based on financial knowledge, behavior and attitudes competencies. Results suggest that income and Japanese language proficiency are the most important determinants of financial literacy, which, in turn, does not have a significant effect on the decision to send remittances or the amount of money sent. Individuals with stronger long-term attitudes toward money and savings tend to remit less, suggesting that remittances are more likely to be utilized for immediate consumption rather than allocated toward long-term financial goals.