Financial literacy of secondary school leavers: a case of Latgale region in Latvia

Abstract

Financial literacy, as a totality of knowledge and skills, provides an opportunity for a person to manage finances successfully, and take rational decisions concerning the choice of various financial services, thus facilitating both individual and public welfare and sustainability. The financial markets have changed along with the financial consumers' awareness. Financial services have become a mass and freely accessible product group, whereas financial institutions have become a part of everyday life for all social groups. Over time, the age of the persons involved in financial processes and evolving consumers of financial services becomes younger and younger. Hence, the need for knowledge and awareness of finances, financial product diversity and related risks is growing more acute for improving financial decision-making. For this reason, financial literacy is acknowledged as a vital life skill globally. The research aims to study, assess, and analyse the financial literacy of secondary school leavers in Latgale.

Towards financial literacy: a case of Slovakia

“…(OECD 2012, p. 13) The national standard of financial literacy in the Slovak Republic defines financial literacy as "the ability to use knowledge, skills and experience to effectively manage one's financial resources to ensure lifelong financial security for oneself and one's household." (MoESRaS SR. 2017) Other interpretations of financial literacy can be found in dozens of articles in databased journals: As stated by Čaplinska and Danileviča (2022), financial literacy, as a totality of knowledge and skills, provides an opportunity for a person to manage finances successfully, and take rational decisions concerning the choice of various financial services, thus facilitating both individual and public welfare and sustainability. The financial markets have changed along with the financial consumers' awareness.…”