Characterisation of Young People According to Their Financial Attitudes and Behaviours - A Survey on the Financial Behaviour and Attitudes of Students in Higher Education

Financial markets and products are becoming increasingly complex. This trend goes hand in hand with an ever-deepening financial information gap. Researchers and marketers should get acquainted with behaviour, habits and attitudes of future’s consumers better. One of the key target groups in exploring this area includes secondary school and university students, as most of the financial education programmes address them. The aim of this study to find out young adults’ characteristics regarding their financial behaviour and attitudes. By segmenting and describing Hungarian undergraduates according to their financial attitudes, the present study sets out to contribute to the success of financial educational programmes, initiated by either the public sector (financial education) or the business sector, with the aim to enhance the level of financial literacy. Based on the database of 2070 respondents, using principal component analysis and K-means clustering, we found that the young people can be categorised into three groups: (1) conservatives, (2) rebels and (3) experienced. The distinct differences in the attitudes and experiences of the three groups suggest that their financial education should be based on different foundations, which is worth considering when developing the relevant curricula

Personality, Attitude and Behavioural Components of Financial Literacy: A Comparative Analysis

Since the financial crisis in 2008 the investigation of financial literacy–especially its components (personality, attitudes, behaviour etc.) - is in the limelight. Modern economics have recognized that in order to effectively forecast financial and economic processes it is primordial to understand the attitudes of the members of society toward finances, as well as the characteristics of various social group sharing the same views and behaviours. In 2015 two relevant pieces of research were conducted in this topic in Hungary. One focuses on the financial personality types, while the other investigates Hungarians’ financial culture in general based on the research methodology of the OECD. Based on these two databases our comparative study highlights the main characteristics of financial personality types. The three clusters based on the OECD research cover the nine personality types from the results of the other Hungarian research. Our findings show that the cluster of “anxious unsatisfied†encapsulates the “economizers with little moneyâ€, the “price sensitive†and the “collector†personality types. Furthermore, the “satisfied conscious†covers the “order creates valueâ€, the “diligent†and the “planner†personality types. Finally, the “moderately anxious unconsidered†involves the “ups and downsâ€, the “money-devouring†and the “cannot control finances†personality types. The clusters identified during the research show idiosyncratic financial and psychological vulnerability and/or protection

A társadalmi-gazdasági környezet változásának hatása a pénzügyi kultúrára :Az OECD 2010-es és 2015-ös kutatási eredményeinek összehasonlítása

2010 és 2015 között alapvető változások jellemezték Magyarország és a magyar lakosság gazdasági-pénzügyi helyzetét. Kutatásunkban arra kerestük a választ, hogy miképpen hatott ez a lakosság pénzügyi kultúrájára. Kutatásunk adatbázisát az OECD 2010-ben és 2015-ben hazai pénzügyi kultúra felmérése képezte. A két felmérés azonos kérdéseire adott válaszok közötti eltérése- ket vizsgáltuk regresszióelemzés és varianciaelemzés segítségével. Megállapítottuk, hogy számos szignifikáns változás történt a két adatfelvétel között. 2015-ben kevesebben bízták másokra pénzügyi döntéseiket, illetve küzdenek pénzügyi problémákkal, ugyanakkor kevesebben készítenek költségvetést és takarítanak meg. A pénzügyi tudást mérő kérdésekben rosszabbul teljesítettünk 2015-ben. Attitűdök szempontjából elmozdulás figyelhető meg az alacsonyabb tudatosság felé. 2015-ben a magyarok kevésbé megfontoltak a pénzügyeik területén, szívesebben költik a pénzüket, és kevéssé tűznek ki hosszú távú célokat. A felmérés eredményei azt mutatják, hogy a 2010-ben jellemző személyes pénzügyi krízis (eladósodottság, megszorítások, munkanélküliség) után a magyarokat 2015-ben a felszabadultság jellemezte: az elhalasztott fogyasztás után a költekezés volt a jellemző. Kiemelendő ugyanakkor, hogy ez a korábbi- aktól eltérően nem hitelfelvételből, hanem a megnövekedett jövedelem felhasználás ával történ

A magyar fiatalok jellemzése pénzügyi attitűdjeik és magatartásuk mentén – Vizsgálat a felsőoktatásban tanulók pénzügyi attitűdjeiről és magatartásáról = Characterization of the Hungarian youth with their financial attitudes and behaviours – A survey about the financial behaviour and attitudes of students

A pénzügyi piacok és termékek egyre komplexebbé válnak, ami együtt jár a pénzügyeket illető információs szakadék mélyülésével is – a lakosság egyre kevésbé képes pénzügyeiről körültekintő döntéseket hozni. Jelen tanulmány a magyar felsőoktatásban tanuló fiatalokat pénzügyi attitűdjeik mentén szegmentálja és jellemzi, annak érdekében, hogy hozzájáruljon a pénzügyi kultúra szintjét növelő programok sikerességéhez, legyen az állami indíttatású (pénzügyi edukáció) vagy a versenyszféra által vezérelt. A vizsgált fiatalok alapvetően három csoportba sorolhatók: (1) Konzervatívak, (2) Lázadók és (3) Tapasztaltak. A Konzervatívakra a stabil morális értékrend, alacsony kockázatvállalási hajlandóság jellemző, céljaik között egyaránt találunk rövid és hosszú távúakat is – informáltságuk, és ebből eredően pénzügyi ismeretszintjük alacsony, a hitelekkel szembeni attitűdjük negatív. A Lázadók csoportjára az „Élj a mának!” magatartás a jellemző, vagyis rövid távú céljaik vannak, kevésbé tudatosak, pénzügyi ismeretszintjük alacsony, ugyanakkor nyitottak az újdonságokra és a kockázatvállalási szintjük magasabb a másik két csoporténál. A Tapasztaltak csoportjára a tudatosság és a pénzügyi megfontoltság a jellemző – pénzügyi ismeretszintjük magasabb a másik két csoporténál. Náluk a hosszú távú célok dominálnak, de alacsony kockázatvállalási hajlandóság mellett. _____ Financial markets and financial instruments have become more and more complex in the last decades. Unfortunately, financial literacy of population cannot keep up with the innovation activity of financial sector. By segmenting and describing Hungarian young adults along their financial attitudes, the aim of this study is to provide recommendations to the programs aiming to enhance the development of financial literacy. According to the authors’ results, 18-25 year-old young adults can be categorized as (1) conservatives, (2) rebels and (3) experienced. Conservatives can be characterized by stable moral and values, low risktaking willingness and inappropriate financial knowledge. Both short and long term goals can be explored among their preferences. Conservatives have negative attitude to bank loans. The rebels can be described by the ancient Latin saying: “Carpe Diem”. They have short-term goals and the future financial stability is not an issue for them – their financial literacy is low. However, rebels are open-minded and their risk-taking willingness is greater than the other two group members. Despite of the low level of risk-taking willingness, the highest level of financial literacy is showed by the experienced group. They have long-term goals and are able to receive information about complex financial instruments

Financial Vulnerability of the Hungarian Population : Empirical Results Based on 2018 Representative Data

The aim of this paper is to introduce a new method to measure Financial Vulnerability Index (FVI) based on OECD financial literacy survey, and to analyse the 2018 OECD survey data along FVI. The sample used in the article is representative for Hungary (sample size: 1,001). Our analysis sharply points out that although the growth of income reduces financial vulnerability, the higher disposable amount does not increase financial awareness. One of the key findings of the research is the identification of the correlations between financial attitudes and financial vulnerability. Our analysis shows that the difficulty of prolonging current desires is a significant factor underlying the development of financial vulnerability. Financially vulnerable population groups not only often struggle to make ends meet, but they also have difficulty controlling spending money

Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability

El orden crea valor: Factores de personalidad, actitud y comportamiento de la vulnerabilidad financieraEn nuestra investigación, nuestro objetivo es conocer las actitudes y comportamientos financieros de los grupos sociales económicamente frágiles. Con base en una encuesta de cuestionario en línea (N = 22933 adultos), formamos grupos mediante análisis de conglomerados y los comparamos entre sí. Examinamos los grupos con métodos estadísticos multivariables, destacando las características relacionadas con la vulnerabilidad financiera. Además, desarrollamos la métrica de fragilidad financiera. Los resultados llaman la atención sobre el hecho de que la fragilidad financiera tiene múltiples razones complejas e interrelacionadas. En términos de personalidad financiera, actitud y comportamiento, alcanzaron el punto promedio más alto en el caso de reclamos claramente adversos, mientras que el más bajo en reclamos benéficos. Nuestros resultados demuestran que, incluso si el grupo financieramente vulnerable representa el 9 %, el grupo de los 'pozos de dinero' y los 'pasivos' muestran varias actitudes y patrones de comportamiento que podrían conducir a la fragilidad financiera en el futuro. La proporción acumulada de estos grupos asciende al 32%. Las personas económicamente vulnerables no cuidan bien ni sus finanzas ni su hogar, no pueden planificar ni prolongar sus deseos, y juzgan incurable su situación, a lo que se suma la ansiedad.In our research, we aim to become acquainted with the attitudes and financial behaviours of financially fragile social groups. Based on an online questionnaire survey (N=22933 adult), we formed groups by cluster analysis and compared them to each other. We examined the groups with multivariable statistical methods, underscoring the characteristics relating to financial vulnerability. Beside we developed the metric for financial fragility. The results draw attention that financial fragility has multiple, complex, interrelated reasons. In terms of financial personality, attitude, and behaviour, they reached the highest average point in case of distinctly adverse claims, while the lowest at beneficial claims. Our results demonstrate that even if the financially vulnerable cluster accounts for 9%, the group of 'money pits' and the 'passive' show several such attitudes and behavioural patterns that could lead to financial fragility in the future. The cumulative ratio of these groups amounts to 32%. Financially vulnerable people do not take good care of either their finances or their household, they can't plan or prolong their wishes, and they judge their situation incurable, which is coupled with anxiety

Financial personality types in Hungary - research methods and results

The objective of our study is to determine the characteristic features according to which an individual can be evaluated from the aspect of his/her financial culture. People filling in the questionnaire consisting of 36 questions may determine how much they can be characterised by individual features or behaviours. We worked with two types of personality profiles. One of them was compiled by the author of the test (preliminarily defined personality profile). In this case, respondents get feedback on the results they achieved in each pre-defined dimension (Price-sensitive, Economizing, Moderate, Saver, Diligent, Controls his finances). Among these dimensions, awareness and diligence are positive preliminary indications of the level of the person’s financial culture. The high level of saving and price-sensitivity did not correlate with good results achieved in other personality dimensions. In addition, we elaborated another personality profile obtained in empirical way. In order to establish the dimensions, we performed factor analysis. The established dimensions are: Short of cash, Economizing; Money-devouring; Order creates value; Price-sensitive; Collector; Planner; Ups and downs; Diligent and Cannot control his finances

Anxious spenders: Background factors of financial vulnerability.

1) Background: Financial literacy, its attitudinal and behavioral components are subject to increasing awareness in Hungary, especially after the economical crisis of 2018. 2) Methods: Our study examines the selected aspects of the Hungarian young adults’ behavior, using the data of the survey conducted on a representative sample to compare financial knowledge, attitudes, behaviors and habits of the 18-35 year-olds with the group of older ones. We also analyze what kind can describe the selected groups, and whether clusters can be established. 3) Results: Financial consciousness and setting long-term financial goals are less typical among young adults. They intend to reach their financial aims not by decreasing their costs or saving but rather by preparing action plans or undertaking more work. Three clusters were identified: worried spenders, satisfied risk-takers and careful considerers. 4) Conclusions: Financial vulnerability is specific to the worried spenders, this cluster represents almost a quarter of young adults. They live for today, financial problems make their existence harder, this, in turn, causes depression, they do not dispose savings. Furthermore, when comparing this cluster to the two other clusters, their financial knowledge and skills are of lower level, less of them make a budget, their income is lower and they tend not to set financial goals as such