Financial literacy in portugal: a study on first-year college students
DOI:
https://doi.org/10.29352/mill0220e.36926Keywords:
Keywords: financial literacy; college students; consumer vulnerability; PortugalAbstract
Introduction: Financial literacy has been in focus during the last decades. Some studies report that Portugal ranks in one of the worst positions in the European Union in terms of financial literacy. Thus, it is important to develop studies that could contribute to a better understanding of this phenomenon.
Objective: Assess the level of financial literacy of Portuguese first-year college students, considering the impact of age, gender, academic background, and parents’ education.
Methods: The sample comprises 255 responses from Portuguese students attending bachelor's courses. A logistic regression model was used to evaluate if age, gender, academic background, and parents’ education impact the odds of having a high level of financial literacy.
Results: 62,4% of the students have a low level of financial literacy. Moreover, age, being a man, and having chosen a business-related course as the first option when applying for higher education systems positively impact the odds of having a high level of financial literacy.
Conclusion: This study contributes by considering the impact of important variables on the financial literacy level, which allows governments to make policy interventions targeted at enhancing financial literacy. This group of individuals is relevant because most have not made any major financial decisions, and it is still possible to intervene. The most vulnerable individuals are female students who didn’t choose a business-related course as their first option when applying for college.
Downloads
References
Agnew, S., & Harrison, N. (2015). Financial literacy and student attitudes to debt: A cross national study examining the influence of gender on personal finance concepts. Journal of Retailing and Consumer Services, 25, 122–129. https://doi.org/10.1016/j.jretconser.2015.04.006
Alessie, R., van Rooij, M., & Lusardi, A. (2011). Financial literacy, retirement preparation and pension expectations in the Netherlands (NBER Working Paper No. 17109). https://doi.org/10.3386/w17109
Allianz. (2017). When will the penny drop? Money, financial literacy and risk in the digital age. (International Pension Papers 1/2017). https://encurtador.com.br/OSaI
Almeida, F., & Costa, O. (2023). Perspectives on financial literacy in undergraduate students. Journal of Education for Business, 98(1), 1–8. https://doi.org/10.1080/08832323.2021.2005513
Ameer, R., & Khan, R. (2020). Financial socialization, financial literacy, and financial behavior of adults in New Zealand. Journal of Financial Counseling and Planning, 31(2), 313–329. https://doi.org/10.1891/JFCP-18-00042
Antoni, X. L., Dlepu, A., & Notshe, N. (2020). A comparative study of financial literacy among undergraduate commerce and arts students: A case of a South African University. International Journal of Economics and Finance Studies, 12(2), 563–580. https://doi.org/10.34109/ijefs.202012220
Bansal, D., & Kaur, L. (2023). Financial literacy and gender gap: a study of Punjab state of India. Journal of Social and Economic Development, 1–25. https://doi.org/10.1007/s40847-023-00253-0
Blaschke, J. (2022). Gender differences in financial literacy among teenagers - Can confidence bridge the gap? Cogent Economics & Finance, 10(1), Article 2144328. https://doi.org/10.1080/23322039.2022.2144328
Bucher-Koenen, T., & Lusardi, A. (2011). Financial literacy and retirement planning in Germany. Journal of Pension Economics and Finance, 10(4), 565–584. https://doi.org/10.1017/S1474747211000485
Bucher‐Koenen, T., Lusardi, A., Alessie, R., & van Rooij, M. (2017). How financially literate are women? An overview and new insights. Journal of Consumer Affairs, 51(2), 255–283. https://doi.org/10.1111/joca.12121
Chambers, R. G., Asarta, C. J., & Farley-Ripple, E. N. (2019). Gender, parental characteristics, and financial knowledge of high school students: Evidence from multicountry data. Journal of Financial Counseling and Planning, 30(1), 97–109. https://doi.org/10.1891/1052-3073.30.1.97
Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. https://doi.org/10.1016/S1057-0810(99)80006-7
Cwynar, A. (2021). Do women behave financially worse than men? Evidence from married and cohabiting couples. Central European Business Review, 10(5), 81–98. https://doi.org/10.18267/j.cebr.270
Duarte, P., Silva, S., Feitosa, W. R., & Sebastião, R. (2022). Are business students more financially literate? Evidence of differences in financial literacy amongst Portuguese college students. Young Consumers, 23(1), 144–161. https://doi.org/10.1108/YC-12-2020-1264
European Central Bank. (2021). Economic bulletin, issue 8/2021. 8.https://www.ecb.europa.eu/pub/pdf/ecbu/eb202108.en.pdf
Ergün, K. (2018). Financial literacy among university students: A study in eight European countries. International Journal of Consumer Studies, 42(1), 2–15. https://doi.org/10.1111/IJCS.12408
Erickson, J. J. (2014). Fathers don’t mother and mothers don’t father: What social science research indicates about the distinctive contributions of mothers and fathers to children’s development. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2519862
Faulkner, A. (2022). Financial literacy around the world: What we can learn from the national strategies and contexts of the top ten most financially literate nations. The Reference Librarian, 63(1–2), 1–28. https://doi.org/10.1080/02763877.2021.2009955
Finke, M. S., Howe, J. S., & Huston, S. J. (2017). Old age and the decline in financial literacy. Management Science, 63(1), 213–230. https://doi.org/10.1287/mnsc.2015.2293
Fonseca, R., Mullen, K. J., Zamarro, G., & Zissimopoulos, J. (2012). What explains the gender gap in financial literacy? The role of household decision making. Journal of Consumer Affairs, 46(1), 90–106. https://doi.org/10.1111/j.1745-6606.2011.01221.x
Henager, R., & Cude, B. J. (2019). Financial literacy of high school graduates: Long- and short-term financial behavior by age group. Journal of Family and Economic Issues, 40(3), 564–575. https://doi.org/10.1007/s10834-019-09626-2
Jacobsen, C., & Correia, J. (2019). Analysis of financial literacy in a college population. Journal of Higher Education Theory and Practice, 19(4), 11–18. https://doi.org/10.33423/jhetp.v19i4.2197
Jayaraman, J. D., & Jambunathan, S. (2018). Financial literacy among high school students: Evidence from India. Citizenship, Social and Economics Education, 17(3), 168–187. https://doi.org/10.1177/2047173418809712
Joo, S.-H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50. https://doi.org/10.1023/B:JEEI.0000016722.37994.9f
Jorgensen, B. L., & Savla, J. (2010). Financial literacy of young adults: The Importance of parental socialization. Family Relations, 59(4), 465–478. https://doi.org/10.1111/j.1741-3729.2010.00616.x
Kadoya, Y., & Khan, M. S. R. (2020). What determines financial literacy in Japan. Journal of Pension Economics and Finance, 19(3), 353–371. https://doi.org/10.1017/S1474747218000379
Kubicková, D., Nulicek, V., & Jindrichovska, I. (2019). Is the financial literacy affected by the field of study? (A comparison of specialised secondary schools). International Journal of Management Science and Business Administration, 5(6), 15–20. https://doi.org/10.18775/IJMSBA.1849-5664-5419.2014.56.1002
Le Fur, E., & Outreville, J.-F. (2022). Financial literacy, education and risk aversion: A survey of French students. Managerial Finance, 48(9/10), 1530–1543. https://doi.org/10.1108/MF-10-2021-0509
Lind, T., Ahmed, A., Skagerlund, K., Strömbäck, C., Västfjäll, D., & Tinghög, G. (2020). Competence, confidence, and gender: The role of objective and subjective financial knowledge in household finance. Journal of Family and Economic Issues, 41(4), 626–638. https://doi.org/10.1007/s10834-020-09678-9
Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How Do women fare? American Economic Review, 98(2), 413–417. https://doi.org/10.1257/aer.98.2.413
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics and Finance, 10(4), 497–508. https://doi.org/10.1017/S1474747211000448
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358–380. https://doi.org/10.1111/J.1745-6606.2010.01173.X
Ministério Público Portugal. (2021). Alerta cibercrime:Fraudes no mercado de criptomoedas e forex. Procuradoria-Geral da República – Gabinete Cibercrime. http://cibercrime.ministeriopublico.pt/cibercrime@pgr.pt
Moreno-Herrero, D., Salas-Velasco, M., & Sánchez-Campillo, J. (2018). Factors that influence the level of financial literacy among young people: The role of parental engagement and students’ experiences with money matters. Children and Youth Services Review, 95, 334–351. https://doi.org/10.1016/J.CHILDYOUTH.2018.10.042
Nikonova, Y., Lunina, T., Prudnikov, A., & Arshba, L. (2018). The study of the level of financial literacy of students of transport universities. MATEC Web of Conferences, 239, Article 07002. https://doi.org/10.1051/MATECCONF/201823907002
Okamoto, S., & Komamura, K. (2021). Age, gender, and financial literacy in Japan. PLOS ONE, 16(11), Article e0259393. https://doi.org/10.1371/journal.pone.0259393
Organisation for Economic Co-operation and Development (OECD). (2015). National strategies for financial education: OECD/INFE policy handbook. https://encurtador.com.br/nLXT
Organisation for Economic Co-operation and Development (OECD). (2020). OECD/INFE 2020 international survey of adult financial literacy. https://encurtador.com.br/YfTr
Organisation for Economic Co-operation and Development (OECD). (2023). OECD/INFE 2023 international survey of adult financial literacy. https://doi.org/doi.org/10.1787/56003a32-en
Pakaluk, C. R., & Price, J. (2020). Are mothers and fathers interchangeable caregivers? Marriage & Family Review, 56(8), 784–793. https://doi.org/10.1080/01494929.2020.1778318
Potrich, A. C. G., Vieira, K. M., Coronel, D. A., & Bender Filho, R. (2015). Financial literacy in Southern Brazil: Modeling and invariance between genders. Journal of Behavioral and Experimental Finance, 6, 1–12. https://doi.org/10.1016/j.jbef.2015.03.002
Potrich, A. C. G., Vieira, K. M., & Kirch, G. (2018). How well do women do when it comes to financial literacy? Proposition of an indicator and analysis of gender differences. Journal of Behavioral and Experimental Finance, 17, 28–41. https://doi.org/10.1016/j.jbef.2017.12.005
Santos, E. M. M., Tavares, V. C., Ratten, V., & Tavares, F. O. (2022). The profile of the Portuguese regarding the perception of financial literacy. Managerial Finance, 48(9/10), 1301–1316. https://doi.org/10.1108/MF-05-2021-0210
Sarabando, P., Matias, R., Vasconcelos, P., & Miguel, T. (2023). Financial literacy of Portuguese undergraduate students in polytechnics: Does the area of the course influence financial literacy? Journal of Economic Analysis, 2(2). https://doi.org/10.58567/jea02020007
Shim, S., Barber, B. L., Card, N. A., Xiao, J. J., & Serido, J. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39(12), 1457–1470. https://doi.org/10.1007/S10964-009-9432-X/FIGURES/1
Tinghög, G., Ahmed, A., Barrafrem, K., Lind, T., Skagerlund, K., & Västfjäll, D. (2021). Gender differences in financial literacy: The role of stereotype threat. Journal of Economic Behavior & Organization, 192, 405–416. https://doi.org/10.1016/j.jebo.2021.10.015
Totenhagen, C. J., Casper, D. M., Faber, K. M., Bosch, L. A., Wiggs, C. B., & Borden, L. M. (2015). Youth financial literacy: A review of key considerations and promising delivery methods. Journal of Family and Economic Issues, 36(2), 167–191. https://doi.org/10.1007/s10834-014-9397-0
van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2011). Financial literacy and retirement planning in the Netherlands. Journal of Economic Psychology, 32(4), 593–608. https://doi.org/10.1016/j.joep.2011.02.004
Wells, R. S., Seifert, T. A., Padgett, R. D., Park, S., & Umbach, P. D. (2011). Why do more women than men want to earn a four-year degree? Exploring the effects of gender, social origin, and social capital on educational expectations. The Journal of Higher Education, 82(1), 1–32. https://doi.org/10.1080/00221546.2011.11779083
Yaffe, Y. (2023). Systematic review of the differences between mothers and fathers in parenting styles and practices. Current Psychology, 42(19), 16011–16024. https://doi.org/10.1007/s12144-020-01014-6
Zaimovic, A., Torlakovic, A., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L., & Nuhic Meskovic, M. (2023). Mapping financial literacy: A systematic literature review of determinants and recent trends. Sustainability, 15(12), 1–30. https://doi.org/10.3390/su15129358
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Millenium - Journal of Education, Technologies, and Health
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who submit proposals for this journal agree to the following terms:
a) Articles are published under the Licença Creative Commons (CC BY 4.0), in full open-access, without any cost or fees of any kind to the author or the reader;
b) The authors retain copyright and grant the journal right of first publication, allowing the free sharing of work, provided it is correctly attributed the authorship and initial publication in this journal;
c) The authors are permitted to take on additional contracts separately for non-exclusive distribution of the version of the work published in this journal (eg, post it to an institutional repository or as a book), with an acknowledgment of its initial publication in this journal;
d) Authors are permitted and encouraged to publish and distribute their work online (eg, in institutional repositories or on their website) as it can lead to productive exchanges, as well as increase the impact and citation of published work
Documents required for submission
Article template (Editable format)
