Abstract
<p style="text-align:justify">The purpose of this study is to describe the actions taken by college students to face their future retirement. For this, the test designed by the National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) in Mexico was used, which has items related to financial knowledge, specifically topics about savings, emergency funds and life insurance, among others. The instrument was applied to 60 UPAV college students of different levels, during the school cycle of February-August 2018, in the city of Xalapa, Veracruz; it should be noted that the range of age was older than 21 but younger than 23 years old. The descriptive analysis showed results that lead us to believe that students have emergency funds (53%) but these are used to face unexpected situations (59%); also, students do not have life insurance, which could be concerning in their personal and family life if/when they have to face a present or future illness. Regarding car insurance, most of the respondents stated that they do not own one, besides considering it an unnecessary expense. One of the study limitations was the surveyed population; hence the need to widen this research to encompass more students from such geographical area in order to obtain a wider outlook of said behavior.</p>
Highlights
IntroductionMexico and several other countries are facing economic challenges which cast uncertainty in buying-selling operations of banking products and services, as stated by Moreno-Garcia, Garcia-Santillan; Bermudez and Almeida (2015), who proved that this phenomenon has brought along a significant reduction on sales and is directly affecting companiescash flow
Background and problem statementFinancial planning and budgeting allow a person to analyze their current situation, choose alternatives and make decisions regarding their financial goals and opportunities, taking control of their income and providing long-term stability and management of financial resources.Nowadays, Mexico and several other countries are facing economic challenges which cast uncertainty in buying-selling operations of banking products and services, as stated by Moreno-Garcia, Garcia-Santillan; Bermudez and Almeida (2015), who proved that this phenomenon has brought along a significant reduction on sales and is directly affecting companiescash flow
The test designed by the National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) in Mexico was used, which has items related to financial knowledge, topics about savings, emergency funds and life insurance, among others
Summary
Mexico and several other countries are facing economic challenges which cast uncertainty in buying-selling operations of banking products and services, as stated by Moreno-Garcia, Garcia-Santillan; Bermudez and Almeida (2015), who proved that this phenomenon has brought along a significant reduction on sales and is directly affecting companiescash flow The former produces concern in young people today since it is more difficult to have a saving culture and in turn, causes the non-fulfillment of contracted debts, whether individually or as a Company. In order to emphasize the subject theoretically, we consider the ideas of Gomez-Soto (2009), who highlights the importance of having financial literacy because it provides people with the necessary knowledge, skills and attitudes to adopt good money management practices for income generation, expense management, savings culture, excellent indebtedness care and even, investment. In said research it is stated that financial literacy has positive effects in future savings behavior (Fry et al, 2008; Meier & Sprenger, 2008; Schreiner & Sherraden, 2007)
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