FINANCIAL LITERACY OF STUDENTS IN CHOSEN UNIVERSITIES – RESEARCH PLATFORM FOR REGULATORY PROCESSES OF EDUCATIONAL SYSTEM IN SLOVAKIA
Name and surname of author:
Matus Kubak, Andrea Tkacova, Armenia Androniceanu, Manuela Tvaronavičienė, Eva Huculova
Financial literacy, ﬁnancial education, prospect theory
DOI (& full text):
The main goal of this paper is to compare the level of ﬁnancial literacy among the selected faculties of economics in Slovakia and to elaborate a comparison of ﬁnancial literacy level at both input…more
The main goal of this paper is to compare the level of ﬁnancial literacy among the selected faculties of economics in Slovakia and to elaborate a comparison of ﬁnancial literacy level at both input and output level, i.e. between the university students at the beginning of their Bachelor study and the university students who are in the ﬁnal stage of their Master study. In addition, we want to analyze the level of ﬁnancial literacy by means of practical tasks aimed at conﬁrmation or rejection of the prospect theory principles. Concerning methods we statistically process our primary data which were collected through the survey 2015/2016 from Slovak University of economics in Košice, Prešov and Bratislava. Inter alia, we analyze correlative data dependence of selected variables. The survey is focused also on ﬁnancial behavior of respondents and their skills in terms of ﬁnancial literacy concept. Last but not least, we deal with features of respondents’ ﬁnancial decision making under the conditions of risk and uncertainty. At ﬁrst, we show that statistically signiﬁcant dependency of FL level on respondents’ sex does exist. Male respondents reached higher FL than female ones. Hypothesis of better high school education of economy at Business Secondary School was rejected, rate of ﬁnancially literate respondents who attended Grammar School or Business Secondary School is comparable. Subsequently, students in their last year of studies at EKF TUKE and NHF EUBA have signiﬁcantly higher level of FL than those students who are at the beginning of their studies. Contrary, at FM PU the rate of ﬁnancially illiterate ﬁrst-year students was lower than the rate of ﬁnancially literate students in their last year of studies. We found out a correlation of FL with decision-making based on prospect theory. The results of the presented research provide important information for policy makers who should reﬂect on present status of this issue in Slovakia.