Financial Literacy in Focus

Financial Literacy and Macro-economics

Dániel Béres
PhD student, Szent István University, Associate of the State Audit Office of Hungary

Katalin Huzdik
PhD student, Szent István University, Assistant Professor at the Budapest College of Communication and Business

Published in: Public Finance Quarterly 2012/3 (p. 298-312.)

Summary: Financial literacy, moving to the forefront on account of the economic crisis, is a crucial element of the proper functioning of any society. Our goal is to identify the indicators of financial literacy in topic-related Hungarian and international literature which can then be used to draw macro-economic conclusions and be tested through Hungary’s example. We have identified four main indicators, which are: (1) income, (2) savings, (3) external funds (loans) and (4) the economy’s demand for cash. A number of criticisms can be raised in connection with the above indicators, most importantly the fact that the perception of financial literacy is overly linked to income. In spite of this, all these indicators are conducive to providing information on one of the financial literacy- related issues (self-provision, confidence, planning, long-term thinking, profitability, etc.).

Keywords: financial literacy, indicator, macro-economics

Journal of Economic Literature (JEL) kód: A13, A14, D03, D12, D14, D31, D81, G11, H24, I22, J11

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