LEVEL OF FINANCIAL LITERACY OF ACADEMIC YOUTH FROM RURAL AND URBAN AREAS
Josef Polák - AMBIS University, Department of Economics and Management, Lindnerova 1, 180 00 Prague 8, Czech Republic
Zuzana Kozubíková - University of Žilina, Faculty of Management Science and Informatics, Univerzitná 8215/1, 010 26 Žilina, Slovakia
Aleš Kozubík - University of Žilina, Faculty of Management Science and Informatics, Univerzitná 8215/1, 010 26 Žilina, Slovakia
DOI: https://doi.org/10.31410/Balkans.JETSS.2021.4.2.110-121
Josef Polák - AMBIS University, Department of Economics and Management, Lindnerova 1, 180 00 Prague 8, Czech Republic
Zuzana Kozubíková - University of Žilina, Faculty of Management Science and Informatics, Univerzitná 8215/1, 010 26 Žilina, Slovakia
Aleš Kozubík - University of Žilina, Faculty of Management Science and Informatics, Univerzitná 8215/1, 010 26 Žilina, Slovakia
DOI: https://doi.org/10.31410/Balkans.JETSS.2021.4.2.110-121
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Balkans Journal of Emerging Trends in Social Sciences, (2021) , Vol 4, No 2
ISSN: 2620-164X |
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Abstract: Financial literacy is becoming one of the key competencies in the 21st century. In its absence, it is virtually impossible to navigate the market for financial products and services and thus ensure financial stability throughout a whole life. This fact is all the more important given the threats arising from the effects of the pandemic crisis. Thanks to exhausted public budgets and the cooling of the economy, it can be expected that, despite strong regulation, there will be more aggressive sell practices on the market, to which financially literate people are more resilient. The aim of the study is to determine the level of financial literacy of academic youth from rural areas and to compare the results obtained with the level of financial literacy of young people from cities. The source of data used for analysis and inference was primary information obtained from own questionnaire research. To assess the level of financial literacy, the authors use an innovative metric, the personal finance index. In addition to overall success, this approach also makes it possible to analyze knowledge from the eight functional areas of financial literacy. By comparing the results in single areas, the authors reveal that risk management is Achyla’s heel of financial literacy. The authors focus on the differences in financial literacy according to the place of residence. The study explores inequalities in the single functional areas of financial literacy between the respondents living in the urban and rural areas.
Keywords: Decision making, Financial education, Financial knowledge, Financial logic, Financial management, Questionnaire survey.
JEL Classification D71 · G41
Keywords: Decision making, Financial education, Financial knowledge, Financial logic, Financial management, Questionnaire survey.
JEL Classification D71 · G41
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Effects of Youth Savings Accounts on School Attendance and Academic Performance: Evidence
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Dupas, P., Keats, A., & Robinson, J. (2019). The Effect of Savings Accounts on Interpersonal
Financial Relationships: Evidence from a Field Experiment in Rural Kenya. The Economic
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Giesler, M., & Veresiu, E. (2014). Creating the Responsible Consumer: Moralistic Governance
Regimes and Consumer Subjectivity. Journal of Consumer Research, 41 (3), pp.840 – 857.
doi:10.1086/677842.
Huang, R., Kale, S., Paramati, S. R., & Taghizadeh-Hesary, F. (2021). The nexus between financial
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Kempson, E., Perotti, V., & Scott, K. (2013). Measuring Financial Capability: A New Instrument
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Lusardi, A., Yakoboski, P. J., & Oggero, N. (2017). The TIAA Institute-GFLEC Personal Finance
Index: A New Measure of Financial Literacy. New York: TIAA Institute.
Mandell, L. (2007). Financial literacy of high school students. In J.J. Xiao (Ed.), Handbook of
Consumer Finance Research, New York, NY: Springer (pp. 163 – 183).
Marmot, M. (2005). Social determinants of health inequalities. The Lancet, 365(9464), 1099–
1104. https://doi.org/10.1016/S0140-6736(05)71146-6
Nam, Y., & Loibl, C. (2021). Financial Capability and Financial Planning at the Verge of Retirement
Age. Journal of Family and Economic Issues, 42(1), 133–150. https://doi.org/10.1007/
s10834-020-09699-4
OECD. (2019). PISA 2018 Assessment and Analytical Framework. PISA, OECD Publishing, Paris.
https://doi.org/10.1787/b25efab8-en
Palát, M. (2014). The causes of migration initiation and reflections on related theories. In 17th
International Colloquium on Regional sciences. Conference Proceedings. (pp. 708–714).
Brno: Masaryk University Press. https://doi.org/10.5817/CZ.MUNI.P210-6840-2014-91
Polák, J.,Kozubíková,Z. & Kozubík,A. (2018). Financial Literacy of University Students and Effects
of Practical Experience. In SOCIOINT 2018, 5th International Conference on Education,
Social Sciences and Humanities -Abstracts and Proceedings, Dubai, UAE 02-04
July 2018 (pp. 17–26). Istanbul, Ocerint International Organization Center of Academic
Research.
Pollack, C. E., & Lynch, J. (2009). Health Status of People Undergoing Foreclosure in the Philadelphia
Region. American Journal of Public Health, 99(10), 1833–1839. https://doi.org/10.2105/
AJPH.2009.161380
Potocki, T. (2019). Financial capability among low-income households in rural parts of Poland.
Argumenta Oeconomica, 2(43), 85–114. https://doi.org/10.15611/aoe.2019.2.04
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly
complex economy. Journal of consumer affairs, 44 (2), 276 – 295. doi: 10.1111/j.1745-
6606.2010.01169.x
van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2012). Financial Literacy, Retirement Planning
and Household Wealth. The Economic Journal, 122, pp. 449–478. doi10.1111/j.1468-
0297.2012.02501.x
REFERENCES
Ansong, D., Chowa, G., Masa, R., Despard, M., Sherraden, M., Wu, S., & Osei-Akoto, I. (2019).
Effects of Youth Savings Accounts on School Attendance and Academic Performance: Evidence
from a Youth Savings Experiment. Journal of Family and Economic Issues, 40(2),
269–281. https://doi.org/10.1007/s10834-018-9604-5
Atkinson, A., & Messy, F.-A. (2012). Measuring Financial Literacy: Results of the OECD / International
Network on Financial Education (INFE) Pilot Study. OECD Working Papers on
Finance, Insurance and Private Pensions, Vol. 15. https://doi.org/10.1787/5k9csfs90fr4-en
Di Giannatale, S., & Roa, M. J. (2019). BARRIERS TO FORMAL SAVING: MICRO- AND
MACROECONOMIC EFFECTS. Journal of Economic Surveys, 33(2), 541–566. https://
doi.org/10.1111/joes.12275
Dupas, P., Keats, A., & Robinson, J. (2019). The Effect of Savings Accounts on Interpersonal
Financial Relationships: Evidence from a Field Experiment in Rural Kenya. The Economic
Journal, 129(617), 273–310. https://doi.org/10.1111/ecoj.12553
Giesler, M., & Veresiu, E. (2014). Creating the Responsible Consumer: Moralistic Governance
Regimes and Consumer Subjectivity. Journal of Consumer Research, 41 (3), pp.840 – 857.
doi:10.1086/677842.
Huang, R., Kale, S., Paramati, S. R., & Taghizadeh-Hesary, F. (2021). The nexus between financial
inclusion and economic development: Comparison of old and new EU member
countries. Economic Analysis and Policy, 69, 1–15. https://doi.org/10.1016/j.eap.2020.10.007
Kempson, E., Perotti, V., & Scott, K. (2013). Measuring Financial Capability: A New Instrument
and Results from Low- and Middle-Income Countries. New York. Retrieved from https://
openknowledge.worldbank.org/bitstream/handle/10986/16296/798060WP020Mea0Box-
0379791B00PUBLIC0.pdf?sequence=1&isAllowed=y
Lusardi, A., Yakoboski, P. J., & Oggero, N. (2017). The TIAA Institute-GFLEC Personal Finance
Index: A New Measure of Financial Literacy. New York: TIAA Institute.
Mandell, L. (2007). Financial literacy of high school students. In J.J. Xiao (Ed.), Handbook of
Consumer Finance Research, New York, NY: Springer (pp. 163 – 183).
Marmot, M. (2005). Social determinants of health inequalities. The Lancet, 365(9464), 1099–
1104. https://doi.org/10.1016/S0140-6736(05)71146-6
Nam, Y., & Loibl, C. (2021). Financial Capability and Financial Planning at the Verge of Retirement
Age. Journal of Family and Economic Issues, 42(1), 133–150. https://doi.org/10.1007/
s10834-020-09699-4
OECD. (2019). PISA 2018 Assessment and Analytical Framework. PISA, OECD Publishing, Paris.
https://doi.org/10.1787/b25efab8-en
Palát, M. (2014). The causes of migration initiation and reflections on related theories. In 17th
International Colloquium on Regional sciences. Conference Proceedings. (pp. 708–714).
Brno: Masaryk University Press. https://doi.org/10.5817/CZ.MUNI.P210-6840-2014-91
Polák, J.,Kozubíková,Z. & Kozubík,A. (2018). Financial Literacy of University Students and Effects
of Practical Experience. In SOCIOINT 2018, 5th International Conference on Education,
Social Sciences and Humanities -Abstracts and Proceedings, Dubai, UAE 02-04
July 2018 (pp. 17–26). Istanbul, Ocerint International Organization Center of Academic
Research.
Pollack, C. E., & Lynch, J. (2009). Health Status of People Undergoing Foreclosure in the Philadelphia
Region. American Journal of Public Health, 99(10), 1833–1839. https://doi.org/10.2105/
AJPH.2009.161380
Potocki, T. (2019). Financial capability among low-income households in rural parts of Poland.
Argumenta Oeconomica, 2(43), 85–114. https://doi.org/10.15611/aoe.2019.2.04
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly
complex economy. Journal of consumer affairs, 44 (2), 276 – 295. doi: 10.1111/j.1745-
6606.2010.01169.x
van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2012). Financial Literacy, Retirement Planning
and Household Wealth. The Economic Journal, 122, pp. 449–478. doi10.1111/j.1468-
0297.2012.02501.x
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