Financial Literacy And Its Effects On Economic Situation Among Young People Today

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Rationale The financial situation among young people today is characterized by an increase in high levels of debt (Lusardi et al., 2010:359). From 1997 to 2007, the loan debt of an average undergraduate student creased by 58% over (from more than $9,000 to $19,200). Furthermore, college students’ credit card debt also grew significantly, by 74% (Sallie Mae, 2009:13). These changes show that the financial knowledge that students widely lack has an enormous influence on their economic situations and even on their families’ in recent years. In a previous study by Lusardi and Tufano in 2009, they realized that financial literacy plays a significant role and has important implications for people’s financial behavior. Therefore, they came to…show more content…
Several studies have concluded that a higher level of financial literacy might promote more households’ participation in formal and financial institutions, such as in the banking and investment business (Astuti et al, 2016, cited in Mouna and Anis, 2017:575). Therefore, this change has brought relative wealth to people, enhanced their quality of life and promoted the country’s economic development simultaneously. The youths, which might be the future of countries’ development, hould be more stringently taught this skill. In Australian and most western democracies, which focus on teaching this skill earlier, youths can learn to drive and begin part-time jobs when they are 16 years old. At the age of 18, they might be able to buy a secondhand car and have a credit card with their savings (Samy et al, 2008:58). The purpose of this research is mainly to examine the factors that have influenced the financial literacy of international students in Glasgow, such as the demographic factors of students, students’ experience and majors and students’ family economic conditions. For the purpose of data collection, this research requires a self-completed questionnaire and should be answered by more than 20 international students from different age groups. The research’s results might be useful for the government and parents to provide a better environment for youth to develop financial literacy. To determine the factors that might
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