Financial Knowledge of University Students

Kutlu Ergün

Ph.D. Candidate, Balikesir University, Department of Economics

ABSTRACT

Objective: This study was carried out to determine the financial knowledge level of university students.

Methods: The universe of this descriptive study consisted of the students studying in universities in 24 countries in Europe. The sample of the study consisted of 260 students at the level of bachelor, master and doctorate. Data was collected by a survey created by literature review. The survey had two parts. The first part had demographic questions and the second part had financial knowledge questions. Online survey had been created, and shared in social media to collect data. Data were entered using the SPSS version 22 (IBM.2014). Descriptive statistics including frequencies and percentages were used to describe the demographics and financial knowledge.

Results: In a survey it was found that 87% participants knew computation of interests, and 79% of those knew parity concept. 82% of participant students defined the meaning of inflation, and 82% of the students had knowledge of the effect of inflation on buying power. 82% of surveyed knew that the safest way of saving is having a bank account, and 49% of the students knew that saving would increase buying power in future. 88% of students have the knowledge on insurance, 66% of those have the knowledge of the relationship between risks and investment, and 62% of those were aware of risks and diversifying. And 68% of the students knew the meaning of credit rating.

Conclusions: As a result, the students had sufficient knowledge and heightened awareness on interest, inflation, saving investment, insurance and risks.