Do Financial Education Level and Financial Behavior of University Students

improve their Economic Benefits? Evidence from Pakistan

Impact of Financial Education Level of University Students on Economic

Benefits: Moderating Role of Financial Behavior

By

Umar Nawaz

Supervisor Name:
Muhammad Mounas Samim

1
 1. INTRODUCTION

Throughout history, people have taken a number of composite financial decisions daily
about expenditures, savings and/or investments. In this sense, so that the expenses are controlled
and investments are done with confident in terms of profitability, people need financial
information and knowledge, provided by financial education.
Financial education has a protective and controlling role of debt, increasing savings and
investment. As such, the teaching of financial education helps to leverage the knowledge of
individuals regarding financial transactions, giving them useful tools for decision-making. In this
sense, financial education should cover the investment options. For the application of financial
knowledge to provide financial well-being to individuals, it is necessary to have a combination
of skills, attitudes and behaviors. Such complexity makes financial education central to the social
and economic context of Pakistan, where political and economic reforms, especially in social
security and university education pat-terns, have taken account of the discussion in the
institutions and organized civil society.
The economic and legal factors are associated with individuals who use financial
education as part of education and training; however, there are some prospects also worth
mentioning in the process of absorption and application of financial knowledge in daily practice.
In this case, evidence indicates that an adult will be effective in his financial decisions through
the construction of economic concepts from his childhood, from money handling, from social
interaction with parents and society, education, practical experience as well as demographic and
individual aspects.

The social and educational factors are predictive of financial well-being, although the
role of financial knowledge cannot be ignored, because it has a defensive effect on the financing
decisions of individuals. Therefore, there is a strong economic socialization as for values,
attitudes, information and skills that can lead to the formation of financial habits lasting for a
lifetime.

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1.1 Back Ground of the Study

Financial knowledge has become one of the most concerned issues in the developed
countries in recent years especially after the economic crisis of 2008 since the effects of personal
finance are significant to societies. Prior to the economic crisis of 2008, studies on financial
knowledge were scarce in academic journals, but governments of many developed countries
however gave the needed attention to the issue of financial knowledge after the crisis. For
instance, there was an advisory committee on personal finance which was put in place to
encourage financial knowledge awareness among Americans after the economic crisis. The idea
of personal finance has been described in the literature as the awareness and use of financial
knowledge in our day to day economic activities. It is therefore the application of financial
knowledge and terminologies by individuals in order to make a rational decision. Many
academic researchers in the field of personal finance have chosen to define the concept as “the
ability to make informed and efficient judgment regarding the use and management of money
(Schagen & Lines, 1996).

Personal finance knowledge is however conceptualized on certain critical areas in finance

such as savings and borrowing, interest rate, budgeting and financial knowledge (Chen & Volpe,
1998). Past Studies have revealed that Americans tend to have a higher rate of consumption
compared to their savings rate. This consequently led the country into a total negative savings
rate. This then calls for the need for United States government to inculcate financial knowledge
among Americans and thus explains why educators, policy makers and university officials have
paid much attention to university student’s financial behavior in recent times. For instance,
several empirical researches have been conducted on use of credit cards by university students
and the results are that university students tend to accrue a significant amount of debts which put
them at greater risk for financial problems after graduation (Allen, Edwards, Hayhoe, & Leach,
2007).

The need for financial education becomes inevitable since today’s world markets are full
of complicated products. Considering the spending habit of people and the desire to have every
material thing, it is therefore imperative to inculcate financial education among people. Senior
students in recent times tend to have easy access to funds, but on the contrary have proven to

3
have inadequate financial education and as a result have become impulsive buyers (Danes,
Huddleston-Casas, & Boyce, 1999).

The inadequate personal finance among university students then has undesirable effects
on students‟ decision making. The issue of personal finance must be given the needed attention
as students would be facing the realities of economic hardships after university. This implies that
there was the need for senior students to be equipped with financial education in order to achieve
some degree of financial autonomy. Several researches conducted globally to measure financial
education among adults have proven that adults tend to exhibit insufficient level of financial
education. A large number of the research however focus on gender as an essential characteristic
of financial education and have documented a persistent gender gap (Hanna, Hill, & Perdue,
2010).

1.2 Financial Education

An education that helps Students to develop the skills necessary to make informed
decisions and also suggests measures that improve their financial well-being (Arnone, 1999).
Remund (2010) tried to conceptualize the definition of personal financial education into five
categories
Knowledge of financial concepts,
Ability to communicate about financial concepts,
Aptitude in managing personal finances,
Skill in making appropriate financial decisions,
Confidence in planning effectively for future financial needs.
This implies that financial education goes beyond the effective use and management of money
and considers other important areas in finance.

1.3 Financial behavior

Financial behavior is defined as the process of how individuals understand and act on
financial knowledge so as to make sound investment decisions (Armstrong, 2015). It then
explains how human beings are able to apply financial ideas, concepts and knowledge in their

4
actions or inactions. Therefore financial behavior is the effects of financial education on the
behavior of consumers or people.

1.4 Economic Benefits

Economic benefits are benefits that can be quantified in terms of money generated, such
as net income, revenues, etc. It can also be money saved when discussing a policy to reduce costs
(Lindberg & Lindberg, 1991).

1.5 Problem Statement

Young adults from families with higher incomes usually have higher levels of financial
education. Adults of financially weak families usually do not acquire financial education, as they
are busy in jobs or study with study of subjects of minor nature. Non-inclusion of financial
knowledge in the curriculum may result in adults incapable of managing their resources and
family expenses, causing serious social and economic barriers. They must acquire financial
education, so that they may be able to take financial decisions to move ahead.

1.6 Research Question

Following are the questions which will be explored through this study: -
 Does the economic benefits of university students improved by gaining financial
education in University?
 Do the strength of relationship between financial education and economic benefits
affected by financial behavior of university students?

1.7 Significance of the Study

This study will expose the students to the need of financial education concepts like
money management, budget, inflation rates and interest rates and the importance of it in financial
decision making. Past studies show that students with high level of financial education are more
able to reduce their debts. This study therefore aims to inform, enlighten and create

5
understanding of the need of personal finance so as to prevent senior students from being
engaged in deceitful transactions.
This study will also inform the government and other stakeholders in education the
financial education level among university students in Pakistan. This study would also expose
parents to the need of financial education and why parents ought to inculcate financial education
into their children.

1.8 Scope of the Study

The focus of this study is to conduct an empirical overview of financial knowledge

among university students. This study focus on public and private universities of Pakistan since
the area is full of people with diverse background and as a result gives the true reflection of
personal finance education of university students in Pakistan. Some constraints encountered
during the survey include the inadequate time period or duration for the study.

1.9 Objectives of the Study

The purpose of this study is to provide evidence of finance education among university
Students in Pakistan. To achieve this, the research will be conducted around the following
specific objectives.
To examine the economic benefits affected by financial education of University Students
To examine the strength of relationship between financial education and economic
benefits affected by financial behavior of university students

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 2. LITERATURE REVIEW

2.1 Literature Review

Financial education was the ability to make sound decisions regarding the use and
management of money. Thus, effective decisions were taken in relation to the use and control of
money (Schagen & Lines, 1996). Remund (2010) tried to conceptualize the definition of
personal financial education into five categories which included; knowledge of financial
concepts, ability to communicate about financial concepts, aptitude in managing personal
finances, and skill in making appropriate financial decisions, and confidence in planning
effectively for future financial needs.
Several academic works indicated that money management skills played an essential role
as it influenced the spending habits of students on campus. Students entered universities without
the basic knowledge of money management which raised from inadequate financial knowledge
(Ibrahim, Harun, & Isa, 2010). Financial education equipped people with requisite information
and ideals needed to make sound decisions with accuracy to manage financial resources and to
improve financial capability to call for better financial services (Ali, 2013).
Hilgert, Hogarth, and Beverly (2003) revealed that a person’s education level had
consistently found to have a direct effect on person’s finance. The level of education tended to
have a positive relationship with personal finance. However, there was a contraction as many
university graduates have proven to have inadequate personal finance (Van Rooij, Lusardi, &
Alessie, 2007). This implied that having the University education did not necessarily mean that
one had high financial autonomy. Individuals who were illiterate had proven not to appreciate
the basic financial concepts such as risk diversification (Lusardi & Mitchell, 2011).
Older children had little knowledge to be financially independent contrary to what most
parents expected. Danes and Hira (1987) indicated that college students only knew general not
specific facts on money management topics that explained their low levels of knowledge in
insurance, credit cards, and overall financial management areas.
It was a wondrous how parents transferred their money management knowledge and
attitudes about money to children within families. There was scarcity about the financial
socialization of children or the transfer of financial attitudes, values, standards, or behaviors
within the context of the family (Danes, 1994).

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 Hogarth and Hilgert (2002) examined financial literacy in a sample covering all age
groups, and on surveys by the National Council on Economic Education, that covered financial
literacy among high school students and the adult population. Findings of widespread illiteracy
were also reported in studies on smaller samples or specific groups of the population financial
illiteracy had implications for household behavior.
D. Bernheim (1995) was the first to point out not only that most households cannot
perform very simple calculations and lack basic financial knowledge, but also that the saving
behavior of many households is dominated by crude rules of thumb. B. D. Bernheim, Garrett,
and Maki (2001) showed that those who were exposed to financial education in high school or in
the workplace save more.
Similarly, Lusardi and Mitchell (2007) showed that those who displayed low literacy
were less likely to plan for retirement and, as a result, accumulate much less wealth. That finding
was confirmed in the work by Stango and Zinman (2007), which showed that those who were
not able to correctly calculate interest rates out of a stream of payments end up borrowing more
and accumulating lower amounts of wealth.
Agarwal, Driscoll, Gabaix, and Laibson (2007) further showed that financial mistakes
were prevalent among the young and elderly, who were those displaying the lowest amount of
financial knowledge. According to Vitt (2004), financial literacy played an essential role in the
process of making financial decisions, as it represents a systematic effort aimed at the
development of positive knowledge, behavior and attitude.
Financial literacy has been recognized as essential for people who operate in an
increasingly complex environment. Governments around the world are interested in finding
effective approaches to improve their populations’ levels of financial literacy through the
creation or improvement of national strategies for financial education with the objective of
offering learning opportunities at various levels of education (Atkinson & Messy, 2012).
Anderloni and Vandone (2011) defined financial education as a preventive measure, as it
allows the individual to understand financial problems and manage his/her personal finances in a
satisfactory way, thereby avoiding indebtedness. Many scholars in the field of personal finance
had indicated that parents had essential impact on their children consumption pattern as it had
been shown in the literature that children tended to develop their money management processes
from parents. Students then learnt from their parents how to manage their finance. Parents then

8
influenced the way children handle money and instilled the attitudes their children had towards
savings. This implied that parents were principal agent on the consumer socialization of their
children (Alhabeeb, 1999).

2.2 Research Model

Theoretical framework is shown in a schematic diagram. This diagram shows the effect
of financing education of university students on economic benefits. The base for this theoretical
framework is literature review. With the help of literature review, it is noted that independent
variable and its dimensions have impact on the economic benefits.

2.3 Theoretical Framework

Financial
Behavior

Financial Economic
Education Benefits

2.4 Hypothesis
Following are the hypothesis:
H1: There is effect of financial education of university students on economic benefits.

H2: There is effect of financial education of university students on economic benefits with
moderating role of financial behavior.

H3: There is effect of financial behavior on economic benefits.

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 3. RESEARCH DESIGN & METHODOLOGY

Following things will be included in this research design.

3.1 Nature of Research

Research kind used to see the Impact of Financial Education Level of University Students
on Economic Benefits: Moderating Role of Financial Behavior is descriptive. Descriptive study
aims to describe the features of the construct and then explains the effect of variables with each
other.

3.2 Research Approach

To see the impact of financial education and financial behavior on economic benefits, the
approach will be quantitative. It translates the idea and construct then changes it into numbers.

3.3 Type of Data

Primary data will be collected to check the Impact of Financial Education Level of
University Students on Economic Benefits: Moderating Role of Financial Behavior. Primary data
will be collected by questionnaire from graduate level university students of public and private
universities. Primary data will help to show the actual, real and true concept of the topic.

3.4 Population

Graduate and post graduate students of public and private universities of Faisalabad will
be the population of the study.

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11
 Category / Main / Sub
# Name of University
Sector Campus
1 Govt. College University Faisalabad Public Main Campus

2 Govt. College for Women University Faisalabad Public Main Campus

3 University Of Agriculture Faisalabad Public Main Campus
4 The University of Faisalabad Private Main Campus
National University of Modern Languages (NUML)
5 Public Sub Campus
Islamabad (Faisalabad Campus)
6 Virtual University of Pakistan, Lahore (Fsd Campus) Public Sub Campus
University of Engineering and Technology (UET),
7 Public Sub Campus
Lahore (Faisalabad Campus)
8 University of Education Lahore (Faisalabad Campus) Public Sub Campus
University of Sargodha, Sargodha (Women Campus
9 Public Sub Campus
Faisalabad)
1
University of Sargodha, Sargodha (Lyallpur Campus) Public Sub Campus
0
National University of Computer and Emerging
1
Sciences, Islamabad (FAST) (Chiniot-Faisalabad Private Sub Campus
1
Campus)
1 The Riphah International University, Rawalpindi
Private Sub Campus
2 (Faisalabad campus)

3.5 Sample
Graduate and post graduate students of Government universities and private universities
will be selected for this proposed study. Total number of Universities and recognized campuses
are 12 in Faisalabad City in which 9 are Public Sector Universities and 3 Private Sector
universities. Public sector universities and recognized campuses are 75% in numbers of total
universities working in Faisalabad city whereas remaining 25% are Private Sector universities.
There are 8 dimensions of variables which will be used in the study. In convenience sampling

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there are minimum observation requirement is twenty, so total minimum questionnaires required
20*8 are equal to 160; however we will distribute 500 questionnaires.

3.6 Unit of Analysis

Students of Universities in Faisalabad will be selected to see Impact of Financial

Education Level of University Students on Economic Benefits.

3.7 Data Collection Method

In this investigation, questionnaire will be used to collect data from students.
Questionnaire with 5 points on Likert scale will be used.

3.8 Instrument Development

In this study, financial education is independent variable, economic benefits are

dependent variable and financial behavior is moderating variable. For financial education,
questionnaire developed by da Silva, Dal Magro, Gorla, and Nakamura (2017) will be adapted.
For economic benefits, questionnaire developed by da Silva et al. (2017) will be adapted. For
financial behavior, questionnaire developed by Armstrong (2015) will be adapted.

3.9 Data Collection Procedure

For collection of responses, questionnaires will be distributed via email and personally
visits in the universities. After the permission of HOD of respective department, questionnaire
will be distributed to the students of that university.

3.10 Data Analysis

Data will be analyzed with the help of SPSS. In data analysis of the study, reliability and
validity of questionnaire will be checked. First of All, validity and reliability of questionnaire
will be checked. Validity of questionnaire will be checked through Cronbach’s alpha technique.
Pilot testing technique will be used to check reliability of questionnaire. Two techniques are
available to check the relationship of moderation and mediation, which are “Baron and Kenny”
and other one is “Process”. Both techniques will be used for data analysis purpose.

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REFRENCES:

Agarwal, S., Driscoll, J. C., Gabaix, X., & Laibson, D. (2007). The age of reason: Financial decisions
over the lifecycle: National Bureau of Economic Research Cambridge, Mass., USA.
Alhabeeb, M. (1999). Allowances and the economic socialization of children. Financial Counseling and
Planning, 10(1), 25-37.
Ali, S. (2013). Financial literacy in Malaysia: Issues and status update. Paper presented at the
International Seminar on Financial Education and Retirement Savings.
Allen, M. W., Edwards, R., Hayhoe, C. R., & Leach, L. (2007). Imagined interactions, family money
management patterns and coalitions, and attitudes toward money and credit. Journal of Family
and Economic Issues, 28(1), 3-22.
Anderloni, L., & Vandone, D. (2011). Risk of over-indebtedness and behavioural factors Risk tolerance
in financial decision making (pp. 113-132): Springer.
Arnone, W. J. (1999). Selling the value of employee financial education to management. Paper presented
at the Personal Finance Employee Education Conference, Virginia Tech, Roanoke, Virginia.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy.
Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving:: The long-term effects of
high school financial curriculum mandates. Journal of public Economics, 80(3), 435-465.
Bernheim, D. (1995). Do households appreciate their financial vulnerabilities? An analysis of actions,
perceptions, and public policy. Tax policy and economic growth, 3, 11-13.
Chen, H., & Volpe, R. P. (1998). An analysis of personal financial literacy among college students.
Financial services review, 7(2), 107-128.
da Silva, T. P., Dal Magro, C. B., Gorla, M. C., & Nakamura, W. T. (2017). Financial education level of
high school students and its economic reflections. Revista de Administração.
Danes, S. M. (1994). Parental perceptions of children’s financial socialization. Financial Counseling and
Planning, 5(1), 127-149.
Danes, S. M., & Hira, T. K. (1987). Money management knowledge of college students. Journal of
Student Financial Aid, 17(1), 4-16.
Danes, S. M., Huddleston-Casas, C., & Boyce, L. (1999). Financial planning curriculum for teens: Impact
evaluation. Journal of Financial Counseling and Planning, 10(1), 26.
Hanna, M. E., Hill, R. R., & Perdue, G. (2010). School of study and financial literacy. Journal of
Economics and Economic Education Research, 11(3), 29.
Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The
connection between knowledge and behavior. Fed. Res. Bull., 89, 309.
Hogarth, J. M., & Hilgert, M. A. (2002). Financial knowledge, experience and learning preferences:
Preliminary results from a new survey on financial literacy. Consumer Interest Annual, 48(1), 1-
7.
Ibrahim, D. I. D., Harun, R., & Isa, Z. M. (2010). A study on financial literacy of Malaysian degree
students. Cross-cultural communication, 5(4), 51-59.
Lindberg, K., & Lindberg, K. (1991). Policies for maximizing nature tourism's ecological and economic
benefits: World Resources Institute Washington, DC.
Lusardi, A., & Mitchell, O. S. (2007). Baby boomer retirement security: The roles of planning, financial
literacy, and housing wealth. Journal of monetary Economics, 54(1), 205-224.
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of
pension economics & finance, 10(4), 497-508.
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly
complex economy. Journal of Consumer Affairs, 44(2), 276-295.
Schagen, S., & Lines, A. (1996). Financial literacy in adult life: a report to the Natwest Group
Charitable Trust: NFER.

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Stango, V., & Zinman, J. (2007). Fuzzy Math and Red Ink: When the Opportunity Cost of Consumption is
Not What it Seems,” mimeo. Paper presented at the Dartmouth College. 42 Viscusi, W. Kip.
Van Rooij, M., Lusardi, A., & Alessie, R. (2007). Financial literacy and stock market participation:
National Bureau of Economic Research.
Vitt, L. A. (2004). Consumers’ financial decisions and the psychology of values.

Armstrong, O. (2015). FINANCIAL LITERACY AMONG SENIOR HIGH SCHOOL STUDENTS.

Under Process , 1-77.

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 Article Title

Impact of Financial Education Level of Questionnaire No.____________

University Students on Economic Benefits with Date:_______________________
Moderating Role of Financial Behavior:
Evidence from Public and Private Universities of Location:___________________
Pakistan.

Program: MS (Finance)

Supervisor: Mr. Mounas Samim

(Lecturer)

Institute: National University of Modern

Languages, Islamabad.

Section A:
Demographic Characteristics
1. Name of Respondent________________________________
2. What is the name of your Institution………………………………………….
3. What category does your institution fall? Public University [ ] Private University [ ]
4. What is your field of study at University?
i. Business ii. General Arts
iii. Science iv. Engineering
5. University Education Level?
i. Undergraduate ii. Graduate
iii. Post Graduate iv. Above
6. What’s your age?
i. Under 18 years ii. 19 to 21 years
iii. 22 to 24 years iv. 25 to 27 years
v. 28 years or above

7. Number of Members in family group?

i. 2-3 Members ii. 4-5 Members
iii. 6-7 Members iv. Over 7 members
8. Monthly average income of the family group?
i. Up to Rs 40,000 ii. Rs 41,000 to Rs 50,000

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iii. Rs 51,000 to Rs 60,000 iv. Rs 61,000 to Rs 70,000
v. Over Rs 70,000

9. Gender?
i. Male ii. Female
10. What is the highest level of schooling your father has completed?
i. None/Junior Secondary School or Middle School ii. Senior High school or equivalent
iii. Training college, Nursing training college, Polytechnic or equivalent degree
iv. Bachelor's degree v. Masters, doctorate, or professional
degree like medical doctor, veterinarian, or vi. Lawyer
11. What is the highest level of schooling your mother has completed?
i. None/Junior Secondary School or Middle School ii. Senior High school or equivalent
iii. Training college, Nursing training college, Polytechnic or equivalent degree
iv. Bachelor's degree v. Masters, doctorate, or professional
degree like medical doctor, veterinarian, or vi. Lawyer
12. With respect to financial gains?
i. I have a salary ii. I have a salary and I financially support the family
iii. Although I have a salary, I get financial help from the family
iv. I do not have a salary, and I do not receive financial support from the family
v. I do not have a salary, but I get financial help from the family
13. Where do you like to learn/increase your financial knowledge? (Check all that apply)
i. Parents ii. Friends iii. School
iv. Books v. Media vi. Job
vii. Life Experience viii. Financial Institution ix. Other(s): ……………

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 Section-B

Please indicate the response best indicates from each of the following. Tick any one of the
following box Never “1” to Always “5”

1 2 3 4 5
Never Rarely Often Very often Always

FINANCIAL EDUCATION LEVEL (da Silva et al., 2017)

Sr.
Questions 1 2 3 4 5
No.
i. How often did your family (parents) discuss finances in the house?
ii. How often did your peers discuss money management with you?
iii. Do you enjoy discuss with your peers about money management issues?
iv. Do your peers influence you in making financial decision?

Sub Section-I: Regarding how I manage my financial resources.

Sr. # Questions 1 2 3 4 5

i. Save part of resources but without future plans

ii. Save money only when possible
iii. Save resources partially to spend as planned
iv. Save and invest part of my income
v. Have some kind of investment on my behalf

Sub Section-II: About the responsibility to submit financial reports to parents and/or partners.
Sr.
Questions 1 2 3 4 5
#
i. I have an obligation to explain how I am using my financial resources
I have to give some kind of explanation only when the resources spent are
ii.
very high
I have to give some kind of explanation only when I need to ask for more
iii.
money
iv. No need to explain how I am using the financial resources

Sub Section-III: In relation to my financial profile, I consider myself

Sr. # Questions 1 2 3 4 5
i. A spender, I spend almost everything I get
ii. Conservative, I do not take the risk to earn more
iii. Cautious, shopping only when needed
iv. A saver, I avoid spending my savings
v. Careless, I have no control over my expenses

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Sub Section-IV: Saving Practices:

Sr. # Questions 1 2 3 4 5
i. I regularly set aside money each month for savings
ii. I set aside money for future needs/wants
iii. I compare prices when shopping for major
iv. I use a spending plan or budget
v. I always keep track of my expenditure and income
Please indicate the response best indicates from each of the following.

1 2 3 4 5
Strongly disagree Disagree Neutral Agree Strongly agree

ECONOMIC BENEFITS (da Silva et al., 2017)

Sub Section I: With respect to financial gains:
Sr. # Questions 1 2 3 4 5
i. I have salary
ii. I have a salary and I financially support the family
iii. Although I have salary, I get financial help from family
iv. I do not have salary and financial support from family
v. I do not have salary, but I get financial help from family

Sub Section-II: About the dialog when deciding to buy a product for family use.
1 2 3 4 5
Sr. # Questions
i. When prompted, I give my opinion and it is considered
ii. When prompted, I give my opinion and it is not considered
iii. When prompted, I do not give my opinion
iv. Even when not prompted, I give my opinion
v. I do not have my opinions requested by my parents or partner
vi. How often do you talk to your parents about money?

Please indicate the response best indicates from each of the following.

1 2 3 4 5
Never Rarely Often Very Often Always

FINANCIAL BEHAVIOR: (Armstrong, 2015)

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Please indicate the response best indicates from each of the following.
Sr. # Questions 1 2 3 4 5
i. I worry about how best to manage my money
I take notes and control my personal expenses (e.g., expense and revenue
ii.
spread sheet)
I establish financial targets for the long term that influence the managing of
iii.
my expenses
iv. I follow a weekly or monthly plan for expenses
v. I go more than one month without balancing my expenses
vi. I am satisfied with the way I control my finances
vii. I can identify how much I pay when using credit
viii. When buying in instalments, I compare the available credit options
ix. I save monthly
x. I save so I can buy something expensive (e.g., car)
I have a financial reserve at least three times my monthly earnings, which can
xi.
be used in unexpected moments (e.g., unemployment)
xii. I analyse my financial situation before a major purchase
xiii. I prefer to buy a financial product to save money to buy in cash

THANK YOU VERY MUCH FOR YOUR TIME AND COOPERATION

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