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Financial Vulnerability of the Hungarian Population — Empirical Results Based on 2018 Representative Data

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  • Németh, Erzsébet
  • Zsótér, Boglárka
  • Béres, Dániel

Abstract

The aim of this paper is to introduce a new method to measure Financial Vulnerability Index (FVI) based on OECD financial literacy survey, and to analyse the 2018 OECD survey data along FVI. The sample used in the article is representative for Hungary (sample size: 1,001). Our analysis sharply points out that although the growth of income reduces financial vulnerability, the higher disposable amount does not increase financial awareness. One of the key findings of the research is the identification of the correlations between financial attitudes and financial vulnerability. Our analysis shows that the difficulty of prolonging current desires is a significant factor underlying the development of financial vulnerability. Financially vulnerable population groups not only often struggle to make ends meet, but they also have difficulty controlling spending money.

Suggested Citation

  • Németh, Erzsébet & Zsótér, Boglárka & Béres, Dániel, 2020. "Financial Vulnerability of the Hungarian Population — Empirical Results Based on 2018 Representative Data," Public Finance Quarterly, Corvinus University of Budapest, vol. 65(2), pages 284-311.
    • Handle: RePEc:pfq:journl:v:65:y:2020:i:2:p:284-311
    DOI: https://doi.org/10.35551/PFQ_2020_2_8
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    References listed on IDEAS

    as
    1. Adele Atkinson & Flore-Anne Messy, 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 15, OECD Publishing.
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    Cited by:

    1. Erzsébet Németh & Boglárka Deák-Zsótér & Botond Géza Kálmán, 2024. "Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-21, Enero - M.

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    More about this item

    Keywords

    financial vulnerability; financial literacy; financial attitudes;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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