The Evolution of University Students’ Financial Attitudes and Their Role in the Sustainability of Personal Finances

Abstract

The purpose of this study is to examine the question of how crises influence the decision-making of Hungarian university students. Crises increase the risk of sustainability, so it is crucial to make appropriate financial decisions in such a situation. For this purpose, the authors conducted a two-stage questionnaire survey among students of economics and other majors. The inquiries took place in 2019 (n = 1558) and 2020 (n = 1712). A regression study was used to analyse the evolution of financial attitudes and investment knowledge, as well as how they are affected by a potential crisis modelled with the COVID-19 pandemic. It has been shown that interest in financial matters increases as a result of the crisis and the level of financial knowledge also increases. However, the most important conclusion of the study is that, in the event of a high threat, knowledge and practice can only be combined with calm thinking to help make appropriate financial decisions. All of this together ensures that investment decisions are the basis for the sustainability of personal finances.

Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact

“…The initial set of questions inquired about demographic characteristics, including gender, age, income, and education. As stated in existing literature, many of these demographic factors are known to influence the formation of financial behavior [44]. Subsequent question groups assessed whether the traits of sustainable investment attitude are associated with sustainable finance literacy and sustainable finance instruments' perceived impact on the environment.…”

“…In this definition, financial literacy is depicted as a progressive undertaking aimed at enhancing comprehension of financial products and principles, evaluating financial risks and opportunities, and facilitating optimal financial decision making [43]. Financial literacy constitutes an element of financial attitude, representing an individual's connection with money and financial affairs [44]. When defining financial literacy, most studies underline the importance of having a certain level of financial knowledge as well as the ability to use this knowledge in the financial decisionmaking process [45][46][47][48].…”

“…Marketa et al (2022) [60] validate that an individual's level of financial literacy influences their ability to engage in sustainable management practices in the Czech Republic. Zéman et al (2023) [44] examine how crises affect Hungarian university students' financial attitudes and investment knowledge. Their results indicate that crises lead to a rise in interest in financial subjects, accompanied by an elevation in the level of financial knowledge [44].…”

“…Zéman et al (2023) [44] examine how crises affect Hungarian university students' financial attitudes and investment knowledge. Their results indicate that crises lead to a rise in interest in financial subjects, accompanied by an elevation in the level of financial knowledge [44]. Milan (2012) [61] confirms that investors who prefer to have sustainable finance instruments in their portfolio can identify the characteristics of sustainable finance instruments better compared to traditional finance investors.…”