Financial Literacy of People Gaining Economic Education in the Context of Acquired Practical Experience
Financial Literacy of People Gaining Economic Education in the Context of Acquired Practical Experience

Author(s): Josef Polák, Zuzana Kozubíková, Aleš Kozubík
Subject(s): Vocational Education, Adult Education, Socio-Economic Research
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Decision making; Economic education; Finance; Financial management; Financial market
Summary/Abstract: Financial literacy affects numerous economic decisions of people on a daily basis, as well as the strategic financial management of corporations. In several previous studies, the authors confirmed a significant difference in the level of financial literacy between full-time and combined students. Based on these results, they hypothesized that practical experience has a positive effect on the level of financial literacy, but this needed to be verified. Therefore, a new survey was conducted with an extended version of the questionnaire with questions specifically related to the practical use of financial products and services. Students of economics who have access to education that supports the growth of financial literacy were interviewed. However, the distribution of the examined groups was not determined by age, a form of study and other common aspects, but the divider was in form of the experience gained, which provided a unique approach using an adequate statistical set of respondents. The results from primary research showed differences in knowledge and the way of solving tasks in the monitored groups of respondents. Using statistical analysis methods and hypothesis tests, the authors’ hypothesis was confirmed and it was shown that students using a wider range of services performed better. It provides usable interdisciplinary outputs for HRM, applied psychology, pedagogy and financial management. The level of financial literacy was tested by the personal finance index which is an innovative metric that analyses knowledge from the eight functional areas of financial literacy. Given that the research sample was drawn from a group of people studying financial management and entrepreneurship subjects, it was also confirmed that theoretical knowledge alone is not sufficient to significantly enhance financial literacy. Thus, the irreplaceability of practical experience for enhancing the level of financial literacy was demonstrated.

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