Financial literacy as an important aspect in the area of business sustainability: the case of Slovak Republic
Abstract
The essence of literacy is currently understood on a broader level. Emphasis is placed on functional literacy, which also includes financial literacy. Its level significantly affects a person’s standard of living. In the contribution, we are devoted to the investigation of this issue and the possibilities of increasing the level of financial literacy in the Slovak Republic. We will use theoretical and empirical scientific methods. We work with analysis, synthesis, induction, and deduction. Subsequently, empirical scientific techniques that work with concrete data and precise methods to achieve results will be used. In addition to explanatory methods, interpretative methods will also be used. According to the level of financial literacy of respondents based on the interview method, hypotheses are established. An analysis of individual answers and an analysis of the impact of financial literacy on young people’s interest in entrepreneurship will be carried out. The findings led to the definition of practically oriented conclusions, with an emphasis on the assessment of the level of financial literacy. Attention is also paid to incentives for young entrepreneurs. All proposals written in this chapter are designed with the intention of improving the level of financial literacy in Slovakia.
Keyword : financial literacy, questionnaire, level of financial literacy, financial education, interest in business
How to Cite
Kicová, E., Poniščiaková, O., Rosnerová, Z., & Fabuš, J. (2024). Financial literacy as an important aspect in the area of business sustainability: the case of Slovak Republic. Business: Theory and Practice, 25(2), 523–534. https://doi.org/10.3846/btp.2024.19970
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Lincényi, M., & Laczko, M. (2020). Influence of Brexit on education towards Europeanism. Insights into Regional Development, 2(4), 814–824. https://doi.org/10.9770/IRD.2020.2.4(7)
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Lizbetinova, L., & Hitka, M. (2016). Izbor najtalentiranijih kandidata u tvrtki za proizvodnju namjestaja [Selection of most suitable candidates for the talent pool in a furniture manufacturing company]. Drvna Industrija, 67(4), 333–340. https://doi.org/10.5552/drind.2016.1601
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Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(3), 5–44. https://doi.org/10.3386/w18952
Lusardi, A. (2011). Americans’ financial capability (NBER Working Paper No. 17103). National Bureau of Economic Research. https://doi.org/10.3386/w17103
Morrow-Howell, N., & Sherraden, M. S. (2015). Financial capability and asset holding in later life a life course perspective. Oxford University Press.
Moreland, K. A. (2018). Seeking financial advice and other desirable financial behaviors. Journal of Financial Counseling and Planning, 29(2), 198–206. https://doi.org/10.1891/1052-3073.29.2.198
National Institute of Certified Measurements. (2022). About the ministry. https://www.minedu.sk/narodny-ustav-certifikovanych-merani-vzdelavania/
Navratilova, P. (2012). Financial literacy. Computer Media.
Nguyen, T. A. N., & Rozsa, Z. (2019). Financial literacy and financial advice seeking for retirement investment choice. Journal of Competitiveness, 11(1), 70–83. https://doi.org/10.7441/joc.2019.01.05
Nemeth, E., Beres, D., Huzdik, K., Deak-Zsoter, B., & Meszaros, A. (2022). Teachers’ financial literacy. Public Finance Quarterly –Hungary, 67(1), 7–32. https://doi.org/10.35551/PFQ_2022_1_1
Ondrejkovic, P. (2007). Introduction to social science research methodology. Veda.
Ozkale, A., & Erdogan, E. O. (2020). An analysis of the interaction between mathematical literacy and financial literacy in PISA. International Journal of Mathematical Education in Science and Technology, 53(8), 1983–2003. https://doi.org/10.1080/0020739X.2020.1842526
Papula, J., & Collective. (2018). How to start and successfully run a business. Wolters Kluwer.
Pearson, B., & Korankye, T. (2022). The association between financial literacy confidence and financial satisfaction. Review of Behavioral Finance, 15(6). https://doi.org/10.1108/RBF-03-2022-0090
Pilar, J. (2012). Financial literacy: How to deal with money? https://adoc.pub/finanni-gramotnost-jak-s-penzi-ing-jii-pila.html
Podnikatelska aliancia. (2023). http://www.alianciapas.sk/en/about-us/
Potrich, A. C. G., Vieira, K. M., & Mendes-da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356–376. https://doi.org/10.1108/MRR-06-2014-0143
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276–295. https://doi.org/10.1111/j.1745-6606.2010.01169.x
Rezankova, H. (2010). Analysis of data from questionnaire surveys. Professional Publishing.
Rimarcik, M. (2007). Statistics for practice. Marian Rimarcik.
Skagerlund, K., Lind, T., Stromback, C., Tinghog, & Vasrfajall, D. (2018). Financial literacy and the role of numeracy – How individuals’ attitude and affinity with numbers influence financial literacy. Journal of Behavioral and Experimental Economics, 74(6), 18–25. https://doi.org/10.1016/j.socec.2018.03.004
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Slovak Business Agency. (2014). State support policy MSP. http://www.sbagency.sk/politika-statnej-podpory-msp
Srpova, J., & Rehor, V. (2010). Business basics. Grada.
Tawfik, H., Huang, R., Samy, M., & Nagar, A. K. (2009). On the use of intelligent systems for the modelling of financial literacy parameters. Journal of Information Technology Research, 2(4), 17–35. https://doi.org/10.4018/jitr.2009062902
Valaskova, K., Kovacova, M., & Kubala, P. (2019). Debt financing. Edis.
Yakob, S., Rusli, R. Z. A., Yakob, R., & Hafizuddin-Syah, B. A. M. (2021). Financial literacy and financial performance of small and medium-sized enterprises. Southeast Asian Journal of Management, 15(1), 72–96. https://doi.org/10.21002/seam.v15i1.13117
Yeh, T., & Ling, Y. (2022). Confidence in financial literacy, stock market participation, and retirement planning. Journal of Family and Economics Issues, 43(1), 169–186. https://doi.org/10.1007/s10834-021-09769-1
Zbojek, J. (2011). Financial literacy. Speller. Paco Fin.
Bottazzi, L., & Lusardi, A. (2021). Stereotypes in financial literacy: Evidence from PISA. Journal of Corporate Finance, 71, Article 101831. https://doi.org/10.1016/j.jcorpfin.2020.101831
Butoracova Sindleryova, I., & Morovska, I. (2009). Entrepreneurship environment in the Slovak Republic from the point of regional innovation, perspectives and development limits. In R. Kotulic (Ed.), Collection of scientific works of the Department of Economics and Economics ANNO 2009. University of Presov in Presov.
Caplinska, A., & Ohotina, A. (2019). Analysis of financial literacy tendencies with young people. Entrepreneurship and Sustainability, 6(4), 1736–1749. https://doi.org/10.9770/jesi.2019.6.4(13)
Clichici, D., & Moagar-Poladian, S. (2022). Financial literacy, economic development and financial development: A cross-country analysis. Romanian Journal of European Affairs, 22(1), 35–49.
Durica, M., & Frnda, J. (2021). Use of data mining methods in predicting financial difficulties. Edis.
Ead, H. A., Fadallah, S. M., Fahmy, H. M., Rezk, M. R., Piccinetti, L., & Sakr, M. M. (2021). Awareness of foresight through education in Egypt: A case study from an Egyptian university. Insights into Regional Development, 3(4), 10–20. https://doi.org/10.9770/IRD.2021.3.4(1)
Folke, T., Gjorgjiovska, J., Paul, A., Jakob, L., & Ruggeri, K. (2021). Asset a new measure of economic and financial literacy. European Journal of Psychological Assessment, 37(1), 65–80. https://doi.org/10.1027/1015-5759/a000575
Furreboe, E. F., & Nyhus, E. K. (2022). Financial self-efficacy, financial literacy, and gender: A review. Journal of Consumer Affairs, 56(2), 743–765. https://doi.org/10.1111/joca.12436
Garcia-Mata, O. (2021). Financial literacy among millennials in Ciudad Victoria, Tamaulipas, Mexico. Estudios gerenciales, 37(160), 399–412. https://doi.org/10.18046/j.estger.2021.160.4021
Gedvilaitė, D., Gudaitis, T., Lapinskienė, G., Brazaitis, J., Žizys, J., & Podviezko, A. (2022). Sustainability literacy and financial literacy of young people in the Baltic States. Sustainability, 14(21), Article 14013. https://doi.org/10.3390/su142114013
Gerth, F., Lopez, K., Reddy, K., Ramiah, V., Wallace, D., Muschert, G., Frino, A., & Jooste, L. (2021). The behavioural aspects of financial literacy. Journal of Risk and Financial Management, 14(9), Article 395. https://doi.org/10.3390/jrfm14090395
Hall, A. (2009). Pockets full of money. Bratislava, Slovak Republic.
Jerrim, J., Lopez-Agudo, L. A., & Marcenaro-Gutierrez, O. D. (2022). The link between financial education and financial literacy: A cross-national analysis. The Journal of Economic Education, 53(4), 307–324. https://doi.org/10.1080/00220485.2022.2111383
Jukšs, V. (2021). Peculiarities of employee professional development in the world, European Union and Latvia. Insights into Regional Development, 3(4), 80–100. https://doi.org/10.9770/IRD.2021.3.4(6)
Kawamura, T., Mori, T., Motonishi, T., & Ogawa, K. (2021). Is financial literacy dangerous? Financial literacy, behavioral factors, and financial choices of households. Journal of Japanese and International Economies, 60, Article 101131. https://doi.org/10.1016/j.jjie.2021.101131
Khan, K. A., Akhtar, M. A., Dey, S. K., & Ibrahim, R. (2020). Financial anxiety, financial advice, and e-payment use: Relationship and perceived differences between males & females of Generation Z. Journal of Critical Reviews, 7(18), 1812–1820.
Khan, K. A., Cera, G., & Alves, S. R. P. (2022). Financial capability as a function of financial literacy, financial advice, and financial satisfaction. E&M Ekonomie and Management, 25(1), 143–160. https://doi.org/10.15240/tul/001/2022-1-009
Kiyosaki, R. T. (2008). Increase your financial IQ. Bratislava, Slovak Republic.
Lincényi, M., & Mindár, M. (2021). Comparative analysis of the views and attitudes of elementary and secondary school pupils from the Czech Republic and Slovak Republic on the division of the Czech and Slovak Federative Republic (ČSFR). Insights into Regional Development, 3(1), 104–123. https://doi.org/10.9770/IRD.2021.3.1(6)
Lincényi, M., & Laczko, M. (2020). Influence of Brexit on education towards Europeanism. Insights into Regional Development, 2(4), 814–824. https://doi.org/10.9770/IRD.2020.2.4(7)
Litvinova, S. (2018). The development of a financial literacy system in Russia. In CBU International Conference Proceedings on Inovations in Science and Education (Vol. 6, pp. 314–318). Czech Republic. https://doi.org/10.12955/cbup.v6.1175
Lizbetinova, L., & Hitka, M. (2016). Izbor najtalentiranijih kandidata u tvrtki za proizvodnju namjestaja [Selection of most suitable candidates for the talent pool in a furniture manufacturing company]. Drvna Industrija, 67(4), 333–340. https://doi.org/10.5552/drind.2016.1601
Lucenicova, K. (2015). Financial literacy in test tasks. National Institute of Certified Education Measurements, Slovak Republic.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(3), 5–44. https://doi.org/10.3386/w18952
Lusardi, A. (2011). Americans’ financial capability (NBER Working Paper No. 17103). National Bureau of Economic Research. https://doi.org/10.3386/w17103
Morrow-Howell, N., & Sherraden, M. S. (2015). Financial capability and asset holding in later life a life course perspective. Oxford University Press.
Moreland, K. A. (2018). Seeking financial advice and other desirable financial behaviors. Journal of Financial Counseling and Planning, 29(2), 198–206. https://doi.org/10.1891/1052-3073.29.2.198
National Institute of Certified Measurements. (2022). About the ministry. https://www.minedu.sk/narodny-ustav-certifikovanych-merani-vzdelavania/
Navratilova, P. (2012). Financial literacy. Computer Media.
Nguyen, T. A. N., & Rozsa, Z. (2019). Financial literacy and financial advice seeking for retirement investment choice. Journal of Competitiveness, 11(1), 70–83. https://doi.org/10.7441/joc.2019.01.05
Nemeth, E., Beres, D., Huzdik, K., Deak-Zsoter, B., & Meszaros, A. (2022). Teachers’ financial literacy. Public Finance Quarterly –Hungary, 67(1), 7–32. https://doi.org/10.35551/PFQ_2022_1_1
Ondrejkovic, P. (2007). Introduction to social science research methodology. Veda.
Ozkale, A., & Erdogan, E. O. (2020). An analysis of the interaction between mathematical literacy and financial literacy in PISA. International Journal of Mathematical Education in Science and Technology, 53(8), 1983–2003. https://doi.org/10.1080/0020739X.2020.1842526
Papula, J., & Collective. (2018). How to start and successfully run a business. Wolters Kluwer.
Pearson, B., & Korankye, T. (2022). The association between financial literacy confidence and financial satisfaction. Review of Behavioral Finance, 15(6). https://doi.org/10.1108/RBF-03-2022-0090
Pilar, J. (2012). Financial literacy: How to deal with money? https://adoc.pub/finanni-gramotnost-jak-s-penzi-ing-jii-pila.html
Podnikatelska aliancia. (2023). http://www.alianciapas.sk/en/about-us/
Potrich, A. C. G., Vieira, K. M., & Mendes-da-Silva, W. (2016). Development of a financial literacy model for university students. Management Research Review, 39(3), 356–376. https://doi.org/10.1108/MRR-06-2014-0143
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276–295. https://doi.org/10.1111/j.1745-6606.2010.01169.x
Rezankova, H. (2010). Analysis of data from questionnaire surveys. Professional Publishing.
Rimarcik, M. (2007). Statistics for practice. Marian Rimarcik.
Skagerlund, K., Lind, T., Stromback, C., Tinghog, & Vasrfajall, D. (2018). Financial literacy and the role of numeracy – How individuals’ attitude and affinity with numbers influence financial literacy. Journal of Behavioral and Experimental Economics, 74(6), 18–25. https://doi.org/10.1016/j.socec.2018.03.004
Skica, T., Mikus, J. & Holienka, M. (2022). Financial literacy and new business entry. Financial Internet Quarterly, 18(2), 42–66. https://doi.org/10.2478/fiqf-2022-0012
Slosar, R. (2011). The current challenge of today – education and training for financial literacy. Financial literacy as part of economic education. In Reviewed collection of contributions from an International Scientific Conference. Department of Pedagogy NHF EU, Slovakia. https://sekarl.euba.sk/arl-eu/sk/detail-eu_un_cat-0142068-Aktualna-vyzva-sucasnosti-vychova-a-vzdelavanie-k-financnej-gramotnosti/
Slovak Business Agency. (2014). State support policy MSP. http://www.sbagency.sk/politika-statnej-podpory-msp
Srpova, J., & Rehor, V. (2010). Business basics. Grada.
Tawfik, H., Huang, R., Samy, M., & Nagar, A. K. (2009). On the use of intelligent systems for the modelling of financial literacy parameters. Journal of Information Technology Research, 2(4), 17–35. https://doi.org/10.4018/jitr.2009062902
Valaskova, K., Kovacova, M., & Kubala, P. (2019). Debt financing. Edis.
Yakob, S., Rusli, R. Z. A., Yakob, R., & Hafizuddin-Syah, B. A. M. (2021). Financial literacy and financial performance of small and medium-sized enterprises. Southeast Asian Journal of Management, 15(1), 72–96. https://doi.org/10.21002/seam.v15i1.13117
Yeh, T., & Ling, Y. (2022). Confidence in financial literacy, stock market participation, and retirement planning. Journal of Family and Economics Issues, 43(1), 169–186. https://doi.org/10.1007/s10834-021-09769-1
Zbojek, J. (2011). Financial literacy. Speller. Paco Fin.