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Defining and Measuring Financial Literacy. New Evidence from Romanian’ Students of the Master in Finance

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  • Oanea Dumitru-Cristian
  • Dornean Adina

    (Faculty of Economics and Business Administration Alexandru Ioan Cuza University Iasi, Romania)

Abstract

This paper aims at defining and measuring financial literacy. The first objective of defining financial literacy was accomplished through reviewing the literature, finding the definition of these two concepts, “financial” and “literacy”, for a better understanding of meanings of these two concepts. This study surveys 200 students from the Master in Finance, at several Faculties of Economics and Business Administration from Romania (Bucharest, Braşov, Cluj, Craiova, Iași). The results that we obtained show that the participants correctly answered at 74.79% of questions. Our study’s results indicate that male students have a higher level of literacy related to personal finance than female students. Also, the survey shows that 75% of economist students from Romania have a medium to high level of financial literacy, but only 48.8% have a high level of financial literacy

Suggested Citation

  • Oanea Dumitru-Cristian & Dornean Adina, 2012. "Defining and Measuring Financial Literacy. New Evidence from Romanian’ Students of the Master in Finance," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 113-129, December.
    • Handle: RePEc:vrs:aicuec:v:59:y:2012:i:2:p:113-129:n:9
    DOI: 10.2478/v10316-012-0036-3
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    References listed on IDEAS

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    1. Diana J. Beal & Sarath B. Delpachitra, 2003. "Financial Literacy Among Australian University Students," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 65-78, March.
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    3. Angela Hung & Andrew Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers 708, RAND Corporation.
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    5. Annamaria Lusardi & Olivia Mitchell, 2006. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education Programs," Working Papers wp144, University of Michigan, Michigan Retirement Research Center.
    6. Annamaria Lusardi, 2008. "Household Saving Behavior: The Role of Financial Literacy, Information, and Financial Education Programs," NBER Working Papers 13824, National Bureau of Economic Research, Inc.
    7. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
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    Cited by:

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    2. Calvin Mudzingiri & John W. Muteba Mwamba & Jacobus Nicolaas Keyser, 2018. "Incentivized Time Preferences, Level of Education in a Household and Financial Literacy: Laboratory Evidence," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 103-119.
    3. Ramesh Prasad Chaulagain, 2017. "Relationship between Financial Literacy and Behavior of Small Borrowers," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 29(1), pages 33-53, April.
    4. Andreas Dal Santo & Duccio Martelli, 2015. "Increasing Financial Literacy through Simulations: The Case of the CFA Society Italy Fund Management Challenge," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 69-100, June.

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