IDEAS home Printed from https://ideas.repec.org/a/isp/journl/v14y2020i1p237-256.html
   My bibliography  Save this article

Determinants Of Financial Habits

Author

Listed:
  • Arnold Tóth
  • Tímea Juhász
  • Botond Kálmán

Abstract

This study concerns financial customs and intelligence of Hungarian college students. The authors focus on practical matters, viz., which the determinants of banking and related services are. The research is based on a survey of 2020, catechizing 1004 respondents attending five disparate faculties in five different Hungarian universities. Beyond conventional sociodemographic variables, we have included two blocks of questions about financial customs and knowledge. They were aggregated to deliver the indices of financial consciousness and financial intelligence. The analysis of determinants of different personal customs was prosecuted by the classification method of CHAID decision tree. Differences among the groups of habits were principally decided by financial consciousness and not by financial intelligence. Contrary to financial consciousness, which is the key driver of group dissimilitude, financial intelligence only influenced people’s customs at the third level of the decision tree. Services in question have proven to be most peculiar to males above the age of 23 with a high level of financial consciousness, and students attending economic or law faculties, most preferably working and studying simultaneously and choosing a correspondence course instead of full-time education. Considering university students are the potential future clients of banks offering the services being analyzed, the precipitate of this study may be a useful tool to grasp the preferences and characteristics of the target group.

Suggested Citation

  • Arnold Tóth & Tímea Juhász & Botond Kálmán, 2020. "Determinants Of Financial Habits," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 14(1), pages 237-256.
    • Handle: RePEc:isp:journl:v:14:y:2020:i:1:p:237-256
    as

    Download full text from publisher

    File URL: https://www.scientific-publications.net/get/1000043/1600092956134172.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ali Coskun & Nurdilek Dalziel, 2020. "Mediation effect of financial attitude on financial knowledge and financial behavior: The case of university students," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 01-08, March.
    2. Cliff Robb, 2011. "Financial Knowledge and Credit Card Behavior of College Students," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 690-698, December.
    3. G. V. Kass, 1980. "An Exploratory Technique for Investigating Large Quantities of Categorical Data," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 29(2), pages 119-127, June.
    4. Milanović Marina & Stamenković Milan, 2016. "CHAID Decision Tree: Methodological Frame and Application," Economic Themes, Sciendo, vol. 54(4), pages 563-586, December.
    5. V.V. Ravi Kumar & Anurag Lall & Tanmay Mane, 2017. "Extending the TAM Model: Intention of Management Students to Use Mobile Banking: Evidence from India," Global Business Review, International Management Institute, vol. 18(1), pages 238-249, February.
    6. Ani Caroline Grigion Potrich & Kelmara Mendes Vieira & Wesley Mendes-Da-Silva, 2016. "Development of a financial literacy model for university students," Management Research Review, Emerald Group Publishing Limited, vol. 39(3), pages 356-376, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Javier Rondán-Cataluña & Patricio E. Ramírez-Correa & Jorge Arenas-Gaitán & Muriel Ramírez-Santana & Elizabeth E. Grandón & Jorge Alfaro-Pérez, 2020. "Social Network Communications in Chilean Older Adults," IJERPH, MDPI, vol. 17(17), pages 1-17, August.
    2. Gholamreza Shiran & Reza Imaninasab & Razieh Khayamim, 2021. "Crash Severity Analysis of Highways Based on Multinomial Logistic Regression Model, Decision Tree Techniques, and Artificial Neural Network: A Modeling Comparison," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    3. Noh, Mijeong, 2022. "Effect of parental financial teaching on college students’ financial attitude and behavior: The mediating role of self-esteem," Journal of Business Research, Elsevier, vol. 143(C), pages 298-304.
    4. Strobl, Carolin & Boulesteix, Anne-Laure & Augustin, Thomas, 2007. "Unbiased split selection for classification trees based on the Gini Index," Computational Statistics & Data Analysis, Elsevier, vol. 52(1), pages 483-501, September.
    5. Hache, Emmanuel & Leboullenger, Déborah & Mignon, Valérie, 2017. "Beyond average energy consumption in the French residential housing market: A household classification approach," Energy Policy, Elsevier, vol. 107(C), pages 82-95.
    6. Ghosh, Atish R. & Qureshi, Mahvash S. & Kim, Jun Il & Zalduendo, Juan, 2014. "Surges," Journal of International Economics, Elsevier, vol. 92(2), pages 266-285.
      • Mahvash S Qureshi & Mr. Atish R. Ghosh & Mr. Juan Zalduendo & Mr. Jun I Kim, 2012. "Surges," IMF Working Papers 2012/022, International Monetary Fund.
    7. Tomàs Aluja-Banet & Eduard Nafria, 2003. "Stability and scalability in decision trees," Computational Statistics, Springer, vol. 18(3), pages 505-520, September.
    8. I. Albarrán & P. Alonso-González & J. M. Marin, 2017. "Some criticism to a general model in Solvency II: an explanation from a clustering point of view," Empirical Economics, Springer, vol. 52(4), pages 1289-1308, June.
    9. Schwartz, Ira M. & York, Peter & Nowakowski-Sims, Eva & Ramos-Hernandez, Ana, 2017. "Predictive and prescriptive analytics, machine learning and child welfare risk assessment: The Broward County experience," Children and Youth Services Review, Elsevier, vol. 81(C), pages 309-320.
    10. Lim, Thien Sang & Mail, Rasid & Abd Karim, Mohd Rahimie & Ahmad Baharul Ulum, Zatul Karamah & Jaidi, Junainah & Noordin, Raman, 2018. "A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 74-79.
    11. Israel‐Javier Juma‐Michilena & Maria‐Eugenia Ruiz‐Molina & Irene Gil‐Saura & Sergio Belda‐Miquel, 2023. "How to increase students' motivation to engage in university initiatives towards environmental sustainability," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(3), pages 1304-1323, July.
    12. Yousaf Muhammad & Dey Sandeep Kumar, 2022. "Best proxy to determine firm performance using financial ratios: A CHAID approach," Review of Economic Perspectives, Sciendo, vol. 22(3), pages 219-239, September.
    13. Ralf Elsner & Manfred Krafft & Arnd Huchzermeier, 2003. "Optimizing Rhenania's Mail-Order Business Through Dynamic Multilevel Modeling (DMLM)," Interfaces, INFORMS, vol. 33(1), pages 50-66, February.
    14. Serrano-Cinca, Carlos & Gutiérrez-Nieto, Begoña & Bernate-Valbuena, Martha, 2019. "The use of accounting anomalies indicators to predict business failure," European Management Journal, Elsevier, vol. 37(3), pages 353-375.
    15. Osman Taylan & Abdulaziz S. Alkabaa & Mustafa Tahsin Yılmaz, 2022. "Impact of COVID-19 on G20 countries: analysis of economic recession using data mining approaches," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-30, December.
    16. Archana R. Panhalkar & Dharmpal D. Doye, 2020. "An approach of improving decision tree classifier using condensed informative data," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 431-445, December.
    17. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2023. "Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    18. Bas Donkers & Richard Paap & Jedid‐Jah Jonker & Philip Hans Franses, 2006. "Deriving target selection rules from endogenously selected samples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 549-562, July.
    19. Vicente-Cera, Isaías & Acevedo-Merino, Asunción & Nebot, Enrique & López-Ramírez, Juan Antonio, 2020. "Analyzing cruise ship itineraries patterns and vessels diversity in ports of the European maritime region: A hierarchical clustering approach," Journal of Transport Geography, Elsevier, vol. 85(C).
    20. Edward Kozłowski & Anna Borucka & Andrzej Świderski & Przemysław Skoczyński, 2021. "Classification Trees in the Assessment of the Road–Railway Accidents Mortality," Energies, MDPI, vol. 14(12), pages 1-15, June.

    More about this item

    Keywords

    finances; consciousness; intelligence; student; decision tree; banking;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isp:journl:v:14:y:2020:i:1:p:237-256. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Svetoslav Ivanov (email available below). General contact details of provider: https://www.scientific-publications.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.