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Financially Savy Households as a Way of Smoohting Shocks in the Market Economy System

Author

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  • Dvorkniczy, Igor
  • Belickova, Kornelia

Abstract

We assume that strengthening consumers' position has far-reaching benefits, including better decision-making, improved services from financial intermediaries, and, ultimately, overall financial stability. Therefore, the paper's main goal is to discuss the most effective way to achieve satisfactory national standards in financial literacy to better anticipate and respond to economic shocks through household financial decisions. Using inductive and deductive research methods, we generate a hypothesis and test it by utilizing microdata from the Household Finance and Consumption Survey, implemented by the National Bank of Slovakia and coordinated by the European Central Bank. Our findings demonstrate the impact of an individual's education on their level of financial literacy and how it affects financial decisions. Ultimately, our research proposes concrete solutions to improve financial literacy and decision-making, and so enhance financial stability.

Suggested Citation

  • Dvorkniczy, Igor & Belickova, Kornelia, 2025. "Financially Savy Households as a Way of Smoohting Shocks in the Market Economy System," Public Finance Quarterly, Corvinus University of Budapest, vol. 71(1).
    • Handle: RePEc:pfq:journl:v:71:y:2025:i:1:p:
    DOI: https://doi.org/10.35551/PFQ_2025_1_9
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    File URL: https://unipub.lib.uni-corvinus.hu/11405/
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    More about this item

    Keywords

    Financial Skills; Financial Stability; Education and Economic Development;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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