Financial Literacy and The Effect of Courses on University on Financial LiteracySüleyman Uyar, Işıl Atalay
Today, developing information technologies and financial systems affect every area of our lives. Financial literacy knowledge, even that ordinary citizens, positively affects some of the financial decisions that they will make regarding their lives. In this context, it is important to determine the financial literacy level of individuals. In this study, the financial literacy level of students studying at Alanya Alaaddin Keykubat University Faculty of Economics and Administrative Sciences (İ.İ.B.F.) was investigated in order to examine the financial literacy status of university students. In addition, how the level of financial literacy was affected by different variables such as the level of being affected by the lessons given on the subject and the students’ opinions about education, was also measured. According to the findings obtained from the study, students’ lessons and gender do not affect the level of financial literacy. Rather, financial literacy levels are affected by students’ self-evaluation of their own financial literacy, the grades they have studied and GPA. Findings obtained from the study generally show that students’ financial literacy level is low.
Finansal Okuryazarlık ve Üniversitede Verilen Derslerin Finansal Okuryazarlık Üzerine EtkisiSüleyman Uyar, Işıl Atalay
Günümüzde gelişen bilgi teknolojileri ve finansal sistemler hayatımızın her alanını etkilemektedir. Sıradan bir vatandaşın bile finansal okuryazarlık bilgisi hayata dair alacağı bazı finansal kararları olumlu etkilemektedir. Bu bağlamda kişilerin finansal okuryazarlık seviyesinin tespit edilmesi önem arz etmektedir. Bu çalışmada üniversite öğrencilerinin finansal okuryazarlık durumlarını incelemek amacıyla Alanya Alaaddin Keykubat Üniversitesi İktisadi ve İdari Bilimler Fakültesi’nde (İİBF) okuyan öğrencilerin finansal okuryazarlık düzeyi araştırılmıştır. Ayrıca finansal okuryazarlık düzeyinin, konuya ilişkin verilen derslerden etkilenme düzeyi ve öğrencilerin eğitime ilişkin düşünceleri gibi farklı değişkenlerden nasıl etkilendiği de ölçülmüştür. Çalışmadan elde edilen bulgulara göre; öğrencilerin aldıkları dersler ile cinsiyetleri finansal okuryazarlık düzeyini etkilememektedir. Buna karşın öğrencilerin kendi finansal okuryazarlıklarına yönelik değerlendirmeleri, okuduğu sınıf ve not ortalaması finansal okuryazarlık düzeyini etkilemektedir. Çalışmadan elde edilen bulgular genel anlamda öğrencilerin finansal okuryazarlık seviyesinin düşük olduğunu göstermektedir.
Today, developing information technologies and financial systems affect every area of our lives. Financial literacy knowledge, even that of ordinary citizens, positively affects some of the financial decisions that they will make regarding their lives. Financial education in the process of gaining financial literacy; It plays a role in providing individuals with financial information, skills and skills infrastructure and supporting the process (Mason & Wilson, 2000). In this context, it is important to determine the financial literacy level of individuals. Research on university students has gained importance in determining the financial literacy levels of young individuals (Yew et al., 2017, s.45). The effect of financial education given at universities is intriguing and various studies have been carried out in many different countries. In studies conducted with different variables, it was found that male students had higher financial knowledge compared to female students and students in departments with financial education at the university had higher financial knowledge compared to students in other faculties (Volpe et al., 1996, s.92). In particular, there have been studies focusing on students studying in departments with dense financial courses such as business and economics. In these studies, it was concluded that financial literacy levels of students studying in business and economics departments, where financial lessons are intense, were higher than other departments (Beal & Delpachitra, 2003, p.77; Borden et al., 2008, p. 35; Rosacker at al., 2009, p.391; Luksander at al., 2014, p.240; Kozina & Ponikvar, 2015, p.252; Chen & Volpe, 1998, p. 222). However, it has been stated that the level of financial knowledge increased gradually from the first year of education to the last year, thereby positively affecting students’ financial attitudes and behaviors (Jorgensen & Savla, 2010, p. 476).
In Turkey, several studies were conducted in order to measure the impact of the financial literacy level of financial education of university students. While some of these studies mostly focused on the interaction of students’ financial knowledge and financial attitudes and behaviors (Coşkun, 2016; Alkaya & Yağlı, 2015; Sarıgül, 2015; Çam & Barut, 2015), another part is their demographic and socio-economic characteristics ( Barmakı & Şener, 2017) and studies to determine the level of financial literacy (Ergün, et al., 2014; Kiliç, et al., 2015; Çinko et al., 2017). In addition, quantitative studies (Bayram, 2014; Er et al., 2014; Elmas & Yılmaz, 2016) and qualitative (Güvenç, 2017) have been conducted on the content of university education and programs, and the effects of financial courses on financial literacy. In the aforementioned studies, the authors tried to determine whether the financial literacy levels of the students were affected by variables such as faculty, department, and academic year.
In this study, conducted with students studying at Alanya Alaaddin Keykubat University Faculty of Economics and Administrative Sciences, the variables were the following: gender, department, grade, grade point average, grade point average, their opinions about the courses on financial education at the university and the students’ assessment of their own financial literacy. These dependent variables are classified as 0=financially literate, 1=financially illiterate. Logistic regression analysis will reveal the effect of independent variables in predicting the membership of students to groups classified as financially literate and financially illiterate. This analysis will reveal the effect of independent variables in predicting students’ membership of the groups classified as financially illiterate and financially literate. All the selected independent variables were defined categorically, and the first levels were selected as the reference class for all variables including the dependent variable. In 90% of the literature studies on financial literacy and its measurement, a standard indicator that the individuals subjected to the research are financially literate could not be obtained, and in the rest of the studies, a further threshold value was used in measuring and interpreting financial literacy (Huston, 2010, p. 303). In the study, whether the students are financially literate or not was determined with the help of a threshold value, and it was deemed appropriate to determine the median value of the correct answer score given to the questions measuring financial information as the threshold value (Volpe, et al., 1996; Chen & Volpe, 1998; Volpe, Kotel, & Chen, 2002. ; Beal and Delpachitra, 2003; Suwanaphan, 2013). Accordingly, students with literacy score higher than the median score (55.55%) were coded with 1. 1-p is the low level of financial literacy of the student and students with literacy score equal to or lower than the median score (55.55%) are coded with 0. The ratio of students who can be defined as financially literate to faculty students is calculated as 26%.
According to the findings obtained from the study, the gender was not statistically significant in estimating the probability of being financially literate. The conclusion that the students who had successfully completed the first year would be financially literate corresponds with studies concluding that the level of financial knowledge increased after the end of the first year of education. This means that the six-hour basic financial education requirement of all department students, especially if completed in the first year, significantly increases the probability of being financially literate. However, it has been concluded that the fact that students receive education in different departments does not affect the possibility of advanced financial literacy, contrary to the results obtained in other studies. It was concluded that the students’ education in the Business Department, which was taken as the reference group, did not affect the financial literacy level compared to other departments. Although the compulsory financial course hours are different in the curriculum of the department, this difference was not effective at the level of financial literacy. It was also concluded that students with higher grades are less likely to be financially literate than reference group students with low grade point averages. This means that students with a GPA of 2.5 and 2.99 in the faculty have a higher GPA than other subjects. In other words, the reason why students with a high GPA are more successful than unsuccessful students is the course rather than financial content. In addition, it was determined that the courses given in the faculty did not affect the financial literacy situations of the students, which they thought were effective or otherwise. However, it was concluded that students’ perception of themselves as being financially literate affects the probability of them being financial literate.