IDEAS home Printed from https://ideas.repec.org/a/isv/jouijm/v4y2015i2p241-255.html
   My bibliography  Save this article

Financial Literacy of First-Year University Students: The Role of Education

Author

Listed:
  • Francka Lovsin Kozina

    (University of Ljubljana, Slovenia)

  • Nina Ponikvar

    (University of Ljubljana, Slovenia)

Abstract

This paper presents an insight into the characteristics of how students manage their finances and their general financial literacy. The study was carried out by surveying 259 students from two different faculties. Students from the study programs with economics subjects were statistically better at defining inflation, liquidity and real income. Statistically significant differences between courses were seen also in the area of investment decisions, business students prefer riskier investments like an investment in bonds or gold, whereas non-business students prefer saving the money in a savings account. The results show that students who had economics content in their program more often state they control their finance and have on average better financial knowledge. The results suggest that participation in economic/financial courses increases financial literacy and also feelings of mastery of financial areas, which is important to transfer knowledge into the practice.

Suggested Citation

  • Francka Lovsin Kozina & Nina Ponikvar, 2015. "Financial Literacy of First-Year University Students: The Role of Education," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 4(2), pages 241-255.
    • Handle: RePEc:isv:jouijm:v:4:y:2015:i:2:p:241-255
    as

    Download full text from publisher

    File URL: http://www.issbs.si/press/ISSN/2232-5697/4_241-255.pdf
    File Function: full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oecd, 2006. "Improving Financial Literacy: Analysis of Issues and Policies," Financial Market Trends, OECD Publishing, vol. 2005(2), pages 111-123.
    2. Bruce Ian Carlin & David T. Robinson, 2012. "What Does Financial Literacy Training Teach Us?," The Journal of Economic Education, Taylor & Francis Journals, vol. 43(3), pages 235-247, July.
    3. Shawn Cole & Anna Paulson & Gauri Kartini Shastry, 2014. "Smart Money? The Effect of Education on Financial Outcomes," The Review of Financial Studies, Society for Financial Studies, vol. 27(7), pages 2022-2051.
    4. Diana J. Beal & Sarath B. Delpachitra, 2003. "Financial Literacy Among Australian University Students," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 65-78, March.
    5. Simon Starcek & Aleš Trunk, 2013. "The Meaning and Concept of Financial Education in the Society of Economic Changes," Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013,, ToKnowPress.
    6. Angela Hung & Andrew Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers 708, RAND Corporation.
    7. Angela A. Hung & Andrew M. Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers WR-708, RAND Corporation.
    8. Jere R. Behrman & Olivia S. Mitchell & Cindy Soo & David Bravo, 2010. "Financial Literacy, Schooling, and Wealth Accumulation," NBER Working Papers 16452, National Bureau of Economic Research, Inc.
    9. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
    10. Lim, Vivien K. G. & Teo, Thompson S. H., 1997. "Sex, money and financial hardship: An empirical study of attitudes towards money among undergraduates in Singapore," Journal of Economic Psychology, Elsevier, vol. 18(4), pages 369-386, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Süleyman Uyar & Işıl Atalay, 2021. "Financial Literacy and The Effect of Courses on University on Financial Literacy," Muhasebe Enstitusu Dergisi - Journal of Accounting Institute, Istanbul University Business School, vol. 64(64), pages 1-17, January.

    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. Süleyman Uyar & Işıl Atalay, 2021. "Financial Literacy and The Effect of Courses on University on Financial Literacy," Muhasebe Enstitusu Dergisi - Journal of Accounting Institute, Istanbul University Business School, vol. 64(64), pages 1-17, January.
    2. Dekui Jia & Ruihai Li & Shibo Bian & Christopher Gan, 2021. "Financial Planning Ability, Risk Perception and Household Portfolio Choice," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(8), pages 2153-2175, June.
    3. Andreas Dal Santo & Duccio Martelli, 2015. "Increasing Financial Literacy through Simulations: The Case of the CFA Society Italy Fund Management Challenge," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 69-100, June.
    4. Oanea Dumitru-Cristian & Dornean Adina, 2012. "Defining and Measuring Financial Literacy. New Evidence from Romanian’ Students of the Master in Finance," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 113-129, December.
    5. Alfonso Arellano & Noelia Camara & David Tuesta, 2014. "El efecto de la autoconfianza en el conocimiento financiero," Working Papers 1427, BBVA Bank, Economic Research Department.
    6. Béres, Dániel & Huzdik, Katalin, 2012. "Financial Literacy and Macro-economics," Public Finance Quarterly, Corvinus University of Budapest, vol. 57(3), pages 298-312.
    7. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    8. repec:mth:ijafr8:v:8:y:2018:i:4:p:533-554 is not listed on IDEAS
    9. Ester Muñoz-Céspedes & Raquel Ibar-Alonso & Sara de Lorenzo Ros, 2021. "Financial Literacy and Sustainable Consumer Behavior," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    10. Douissa, Ismail Ben, 2020. "Factors affecting College students’ multidimensional financial literacy in the Middle East," International Review of Economics Education, Elsevier, vol. 35(C).
    11. Heenkkenda, Shirantha, 2014. "Inequalities in the Financial Inclusion in Sri Lanka: An Assessment of the Functional Financial Literacy," MPRA Paper 54419, University Library of Munich, Germany.
    12. Davoli, Maddalena & Hou, Jia, 2018. "Financial literacy and socialist education: Lessons from the German reunification," SAFE Working Paper Series 217, Leibniz Institute for Financial Research SAFE.
    13. Korkmaz, Aslihan Gizem & Yin, Zhichao & Yue, Pengpeng & Zhou, Haigang, 2021. "Does financial literacy alleviate risk attitude and risk behavior inconsistency?," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 293-310.
    14. Potrich, Ani Caroline Grigion & Vieira, Kelmara Mendes & Kirch, Guilherme, 2018. "How well do women do when it comes to financial literacy? Proposition of an indicator and analysis of gender differences," Journal of Behavioral and Experimental Finance, Elsevier, vol. 17(C), pages 28-41.
    15. Zaheer Ahmed & Umara Noreen & Suresh A.L. Ramakrishnan & Dewi Fariha Binti Abdullah, 2021. "What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 11(1), pages 1-19.
    16. Steffen Westermann & Scott J. Niblock & Jennifer L. Harrison & Michael A. Kortt, 2020. "Financial Advice Seeking: A Review of the Barriers and Benefits," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 367-388, December.
    17. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    18. Francisco J. Oliver-Márquez & Almudena Guarnido-Rueda & Ignacio Amate-Fortes, 2021. "Measuring financial knowledge: a macroeconomic perspective," International Economics and Economic Policy, Springer, vol. 18(1), pages 177-222, February.
    19. Khanh Duy Pham & Vu Linh Toan Le, 2023. "Nexus between Financial Education, Literacy, and Financial Behavior: Insights from Vietnamese Young Generations," Sustainability, MDPI, vol. 15(20), pages 1-21, October.
    20. Pallavi Dogra & Arun Kaushal & Rishi Raj Sharma, 2023. "Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach," Vision, , vol. 27(1), pages 48-62, February.
    21. Catherine P. Montalto & Erica L. Phillips & Anne McDaniel & Amanda R. Baker, 2019. "College Student Financial Wellness: Student Loans and Beyond," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 3-21, March.

    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:isv:jouijm:v:4:y:2015:i:2:p:241-255. 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: Alen Ježovnik (email available below). General contact details of provider: http://www.issbs.si .

    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.