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Examining the Financial Literacy of Young Adults – The Correlations of Time Perspective, Financial Well-Being and Delay of Gratification

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  • Zsótér, Boglárka

Abstract

The study examines the financial literacy of 18–35-year-olds, with particular emphasis on the correlations of time orienta-tion, gratification and financial well-being. The examination of the topic requires an interdisciplinary approach, and as such, it builds on results from the fields of psychology, sociology and the study of consumer behaviour. The research was conducted using a sample of 300 respondents, representative in terms of gender, age and place of residence, relying on online questionnaires. Based on the results, in respect of time orientation we found that future orientation has the most radical effect, especially concerning the ability to delay gratification. Present-hedonism primarily affects the ability to delay gratification in the financial sense. Financial well-being is most affected by the present-fatalistic and past-negative attitudes, with this particular relationship having a negative direction. In addition, generated on the basis of financial attitudes, the distinct clusters of the research reveal that the 18–35 age group should not be treated as a homogenous group.

Suggested Citation

  • Zsótér, Boglárka, 2018. "Examining the Financial Literacy of Young Adults – The Correlations of Time Perspective, Financial Well-Being and Delay of Gratification," Public Finance Quarterly, Corvinus University of Budapest, vol. 63(1), pages 39-54.
    • Handle: RePEc:pfq:journl:v:63:y:2018:i:1:p:39-54
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    References listed on IDEAS

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    1. Erzsabet enemeth & Boglarka Zsoter, 2017. "Personality, Attitude and Behavioural Components of Financial Literacy: A Comparative Analysis," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 46-57.
    2. Béres, Dániel & Huzdik, Katalin, 2012. "Financial Literacy and Macro-economics," Public Finance Quarterly, Corvinus University of Budapest, vol. 57(3), pages 298-312.
    3. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    4. Adele Atkinson & Flore-Anne Messy, 2012. "Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study," OECD Working Papers on Finance, Insurance and Private Pensions 15, OECD Publishing.
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    Keywords

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    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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