Financial literacy, education and risk aversion: a survey of French students

Abstract

PurposeFinancial literacy is generally seen as an important factor explaining a broader set of investment behaviors. In the context of a weak financial knowledge in France, this article focuses on the particular situation of Generation Z (individuals born after 1995) and more particularly management students likely to be involved in financial decisions in the near future.Design/methodology/approachThe analysis is based on a survey conducted in the Fall of 2019, through a questionnaire distributed to 300 students enrolled in a French business school.FindingsThe results indicate that financial knowledge is poor for students who do not follow a specialized course in finance. This research also demonstrates the importance of risk behavior, showing that risk adverse students are also those with the lowest level of financial literacy.Originality/valueThis article contributes to the academic literature by focusing on students in France. It is the first study to examine Gen Z financial literacy and its implications. It raises awareness on the importance of financial education in the education curriculum.

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

“…2.2 Financial literacy Financial literacy may be defined as "the ability to use knowledge, skills and experience of an individual to make effective decisions regarding the use and management of their own finances to provide life-long financial security for themselves and their families" (Mihal cov a et al, 2014, p. 319). Financial literacy takes its roots in financial education (Lusardi, 2019;Le Fur and Outreville, 2022). Past studies have found financial literacy to be a significant predictor of investment and portfolio diversification decisions (Guiso and Jappelli, 2009;Al-Tamimi and Kalli, 2009;Kimball and Shumway, 2010;Sood and Medury, 2012;Aren and Zengin, 2016;Gerhard et al, 2018;Nag and Shah, 2022;Cup ak et al, 2022;Chen et al, 2023).…”