Abstract

The current globalized world requires individuals to take responsibility for their decisions. Therefore, it is necessary that the younger generation reach a certain level of knowledge, including knowledge of financial literacy. Financial literacy covers an important area security in old age. The aim of this paper is to assess the level of financial literacy amongst university students, with a focus on income security in old age. Primary data were obtained by quantitative research using a questionnaire survey (n = 1 437) in 2018 amongst full-time bachelors and masters degree students at three universities. The selected universities focus on economy and agriculture and each of them is located in a different region of the Czech Republic. The results show that 47.8% of respondents worry about their income security in old age. As a way of financing the retirement, most of the respondents chose the option “from the state pension and in another way”. Statistical evaluation proved dependence between the gender of respondents and the responses mentioned above. Women more often chose the “from state pension and in another way” option than men. On the other hand, men chose the “in another way” option more often. It follows that men do not want to be dependent on the state, but they want to secure themselves in another way.

Highlights

  • Financial literacy has become a skill required for life and prosperity in the contemporary economy [1].The level of financial literacy affects individuals and, by doing so, shapes the image of the society as a whole

  • All respondents were asked if they had been thinking about their income security in old age

  • The outcomes of the questionnaire survey suggest that income security is an issue that may have a significant impact on economy

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Summary

Introduction

Financial literacy has become a skill required for life and prosperity in the contemporary economy [1]. The level of financial literacy affects individuals and, by doing so, shapes the image of the society as a whole. The impact of the level of financial literacy on households is obvious as it has implications on the households’ economy, their decision-making, and planning [2, 3]. The challenges of financial decision-making faced by the younger generation are far more difficult to cope with that those faced by the previous generations. Individuals must take more responsibility for their financial decisions like investment in higher education, saving for education of their children, and planning for their retirement [4, 5]

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