Why do consumers remain financially illiterate? The empirical test of some less investigated reasons

Authors

  • Piotr Oratowski Grupa Azoty S.A.
  • Andrzej Cwynar University of Economics and Innovation (UEI) in Lublin (Poland)
  • Wiktor Cwynar University of Economics and Innovation (UEI) in Lublin (Poland)
  • Robert Dankiewicz Ignacy ?ukasiewicz Rzeszów University of Technology (Poland)
  • Anna Ostrowska-Dankiewicz Ignacy ?ukasiewicz Rzeszów University of Technology (Poland)

DOI:

https://doi.org/10.15549/jeecar.v6i1.285

Keywords:

financial literacy, financial education, numeracy

Abstract

Although financial literacy becomes increasingly important in more and more financialised world, and despite broad-based financial education interventions, consumers still display large shortcomings in the literacy. In this study, using multivariate linear regression and a nationally representative sample of adult Poles (N=1,067), we test some little-studied potential determinants of financial literacy with the purpose to further explain low financial literacy levels. We found that respondents who are more interested in financial domain, have less difficulty in understanding information supplied by means of numbers, and report more learning from own mistakes are at the same time more financially literate, even after controlling for sociodemographic characteristics. Possible implications regarding the role of these factors for financial education are discussed.

Author Biographies

Piotr Oratowski, Grupa Azoty S.A.

Piotr Oratowski is a Financial Controller in Grupa Azoty S.A. in Tarnów (Poland), the largest Polish and one of the largest European chemical company. Former didactic worker at Wy?sza Szko?a Biznesu - National Louis University in Nowy S?cz. A financial analyst at Splentum Sp. z o.o., specialist in the field of business valuations, financial analyzes and transfer pricing. A co-author of several articles devoted to financial issues.

Andrzej Cwynar, University of Economics and Innovation (UEI) in Lublin (Poland)

Andrzej Cwynar, Ph.D. is an Associate Professor at the University of Economics and Innovation (UEI) in Lublin (Poland). Former dean of Department of Economics at the UEI, founder and director of the Institute for Financial Research and Analyses (2010-2013), and editor-in-chief of the scientific quarterly “e-Finanse” (2004-2013). Business associate of Splentum Sp. z o.o. An author and co-author of several books and over 100 articles devoted mainly to financial issues. His main field of interest is corporate finance & financial management as well as financial literacy with special emphasis on debt issues.

Wiktor Cwynar, University of Economics and Innovation (UEI) in Lublin (Poland)

Wiktor Cwynar, Ph.D. is an Assistant Professor at the University of Economics and Innovation (UEI) in Lublin (Poland). Director of the Corporate Controlling Department at Grupa Azoty S.A. in Tarnów (Poloand). Former Rector of Wy?sza Szko?a Biznesu - National Louis University in Nowy S?cz and Warszawska Wy?sza Szko?a Ekonomiczna in Warsaw. CEO and Co-founder of Splentum Sp. z o.o. Skilled in business planning, data analysis, business development and strategic planning. An author and co-author of several books and dozens of articles devoted mainly to financial issues.

Robert Dankiewicz, Ignacy ?ukasiewicz Rzeszów University of Technology (Poland)

Robert Dankiewicz is an Assistant Professor at the Faculty of Management in the Department of Finance, Banking and Accounting at the Ignacy ?ukasiewicz Rzeszów University of Technology (Poland). His research, publishing and consulting activity focuses on the subject of risk management in business operations, trade credit insurance and insurance guarantees. In the above-mentioned scope, he is the author of several dozen scientific articles, many expert opinions and analyzes. For many years he has been cooperating with several enterprises in this field.

Anna Ostrowska-Dankiewicz, Ignacy ?ukasiewicz Rzeszów University of Technology (Poland)

Anna Ostrowska-Dankiewicz is an Assistant Professor at the Faculty of Management in the Department of Finance, Banking and Accounting at the Ignacy ?ukasiewicz Rzeszów University of Technology (Poland). Her research and practical activities are related to the functioning of insurance in households and enterprises. The subject matter of several dozen scientific publications concerns mainly life insurance, as forms of savings, the effectiveness of insurance capital funds, insurance protection institutions and the use of insurance as a tool in business risk management.

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Published

2019-03-31

How to Cite

Oratowski, P., Cwynar, A., Cwynar, W., Dankiewicz, R., & Ostrowska-Dankiewicz, A. (2019). Why do consumers remain financially illiterate? The empirical test of some less investigated reasons. Journal of Eastern European and Central Asian Research (JEECAR), 6(1), 40–55. https://doi.org/10.15549/jeecar.v6i1.285

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Vol. 6 No. 1 (2019): Journal of Eastern European and Central Asian Research

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