THE RELATION BETWEEN FINANCIAL KNOWLEDGE AND ECONOMIC DECISIONS
Journal Title: Problems of Education in the 21st Century - Year 2014, Vol 59, Issue 1
Abstract
Nowadays policymakers, government agencies and educators in Poland and in many European countries emphasize the role of individual possibilities to take independent decisions regarding one’s financial resources. Consequently, the increased interest in financial education programs is observed. Moreover, the complexity of financial products further demonstrates the need for a financial knowledge when making decisions in this sphere. However, simultaneously, the common observation of numerous examples of irrelevant decision-making, consequently leading to financial (e.g. abundant debt) or professional (e.g. loss of work) problems as well as results of studies on the level of financial knowledge show that in many cases our society, most probably, does not have the indispensable level of analyzed knowledge. The article presents results of 2 studies on the relation between financial knowledge and economic decisions made by Polish young adults. The study 1 focuses on the correlation between financial knowledge and saving decisions while the study 2 financial knowledge and respondents debts. In both studies the level of financial knowledge was measured by the test relating to the current economic situation of Poland, knowledge of basic economic and financial concepts and understanding of basic market mechanisms. Specially designed questionnaires analyzed respondents’ savings (study 1) and debts (study 2) decisions. The results of those studies show that examined a group of Polish young adults has an average level of financial knowledge. Moreover, the first study found positive correlation (on the level of statistical trend) between financial knowledge and savings decisions. The results of study 2 showed the higher financial knowledge among people who took credits or loans from bank in comparison with people who take credit and loans outside the banking system. Results obtained in the studies reinforce the idea of the important role of financial education in preparing young people to make their own economic decisions.
Authors and Affiliations
Sabina Kołodziej
THE RELIABILITY OF AN INSTRUMENT TO MEASURE TEACHER KNOWLEDGE FROM THE PERSPECTIVE OF LEARNERS IN THE CONTEXT OF PIBID
This research sought to analyze the reliability of an instrument to measure teacher knowledge of a group of pre-service chemistry teachers participating in the Institutional Program for Scholarships for Beginner Teachers...
COMPETENCES CURRENTLY NECESSARY FOR EXTERNAL RELATIONS SPECIALISTS WORKING IN LATVIA
The objective of the research was to find out the most necessary competences of external relations specialists working in Latvia at the present moment, as well as to provide solutions for ensuring the acquisition of the...
NEOLIBERALISM AND HIGHER EDUCATION IN IRAN: A CRITICAL PERSPECTIVE
Present research aims to explore the effects of Neoliberalism on higher education based on the Henry Giroux's artistic view points and to examine the process of commercialization and privatization of higher education in...
DESIRED CULTURE AND REALISTIC VALUE-JUDGEMENT
To create and to operate a knowledge management system is becoming a more and more popular targets of companies. Realizing the changes above can result in a failure - in spite of the strongest will – if organizations lac...
CAREER IN THE LIGHT OF EDUCATIONAL ATTAINMENT AND CAREER MANAGEMENT SKILLS
The career usually refers to individuals’ working life, education and training and to life in general. The studies and reports evaluating the relations between these components mainly justify the power of educational att...